Mr Sengupta said, “Loan growth is unlikely to cross 20 per cent this year going by the current credit off take. Next year we should see higher growth at around 25 per cent. Deposit growth is also likely to be along the same lines at 25 per cent.” The bank is planning to open 200 new branches this fiscal as well as the next.
Net profit of Axis Bank for Q2 grew by 32 per cent to Rs 531.64 crore, aided mainly by increase in other income and reduction in cost of funds. Mr Somnath Sengupta, Executive Director and Chief Financial Officer, said that increase in current and saving deposits helped the bank cut cost of funds to 5.41 per cent as compared to 6.08 per cent last year and also post a healthy growth in net interest income.
Areas which saw good growth were fee and trading income within other income. An income of 123 crores was recovered through written off loans also. Trading profits were lower, at Rs 224 crore as compared to Rs 326 crores the previous quarter. Also retail growth was a low 7 %, mainly due to selectivity with unsecured loans and higher base of retail loans last year.
Mr Sengupta said, “Loan growth is unlikely to cross 20 per cent this year going by the current credit offtake. Next year we should see higher growth at around 25 per cent. Deposit growth is also likely to be along the same lines at 25 per cent.” The bank is planning to open 200 new branches this fiscal as well as the next.
Within the retail segment, the bank is expecting mortgages to grow the fastest with infrastructure and SME also expected to see good growth.