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Bloomberg
Axis Bank Ltd.’s quarterly profit jumped 62% and topped estimates amid robust growth in lending and improved margins.
Net income climbed to 58.5 billion rupees ($719 million) in the third quarter, compared with 36.1 billion rupees a year ago, according to a statement on Monday. That beat the average estimate of 53.4 billion rupees by analysts in a Bloomberg survey.
Rising interest rates are providing a tailwind for Indian lenders as loan growth ramps up in one of the world’s fastest-growing economies. Axis Bank has bet the strong corporate and retail appetite for loans will continue to grow with its purchase of Citigroup Inc.’s retail banking business.
Net interest income at Axis Bank increased to 114.6 billion rupees, up from 103.6 billion rupees in the previous quarter.
The bank’s gross loans stood at 2.38%, down from 2.5% three months earlier. Axis Bank set aside 14.4 billion rupees in provisions during the quarter, more than the 5.5 billion rupees it set aside the prior quarter, and higher than the estimate of 10.88 billion rupees.