Mumbai: Axis Bank reported stable operating performance in the December quarter, with net profit rising 3% year-on-year to Rs 6,490 crore, supported by strong loan growth and higher fee income, even as margins declined. The bank’s net interest income rose 5% to Rs 14,287 crore from a year ago, driven by a 14% rise in advance payments to Rs 11,59,052 crore. Corporate loans increased by 27% year-on-year, while loans to small and medium enterprises increased by 22%. However, retail loans, which form the bulk of the bank’s advances, grew only 6%. Net interest margin declined to 3.64% from 4.06% in the year-ago quarter. The bank management said the decline in the share of retail loans was due to the decision to proceed at a slower pace due to stress in some sectors in the past and retail loan disbursements have now picked up.Total deposits increased by 15% to Rs 12,60,786 crore, deposits in current and savings accounts (CASA) increased by 14%. The balance sheet grew by 15% to Rs 17,52,171 crore.Total income from operations increased 5% to Rs 20,512 crore.
