Indian private-sector lender Axis Bank reported on Saturday a quarterly profit that narrowly missed analyst expectations, as higher operating expenses and weaker other income offset robust credit growth and lower provisions.
Axis Bank, the country's third-largest private bank by assets, posted a stand-alone net profit of ₹7,003 crore ($737.5 million) for the quarter ended on September 30, compared with ₹5,090 crore a year earlier.
Analysts, on average, had forecast a profit of ₹7,124 crore, according to LSEG-compiled data.
Other income, which includes earnings from bonds and other investments, fell 1.4 per cent to ₹6,531 crore.
Rising bond yields and volatility in the rupee during the quarter weighed on treasury income at the Mumbai-based lender, tempering earnings even as lending expanded across segments.
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Banks across India reported strong loan growth during the quarter across corporate and retail portfolios.
Net interest income grew 11.8 per cent to ₹15,371 crore, helped by a 23 per cent rise in total loans. Deposits increased 20.7 per cent from a year earlier.
Provisions for potential bad loans and other contingencies fell 52.2 per cent to ₹1,694 crore.
The gross non-performing asset ratio stood at 1.16 per cent at end-September, compared with 1.28 per cent three months earlier.
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