India's Axis Bank quarterly profit rises 37.6%, but misses estimates on higher costs

Business Recorder reported that Axis Bank, a Mumbai-based private lender, earned 70.03 billion Indian rupees ($737.5 million) for the quarter ended September 30, against 50.90 billion a year earlier. The figure fell just short of the 71.24 billion rupees that analysts had expected on average. Higher operating costs and a drop in other income outweighed solid loan growth and lower set-asides for doubtful debts.

Other income slipped 1.4% to 65.31 billion rupees, as bond and investment gains were dragged down by climbing yields and currency swings during the quarter. Net interest income rose 11.8%, reaching 153.71 billion rupees, with total loans up 23% and deposits climbing 20.7% over the year.

Provisions against possible bad loans dropped 52.2% to 16.94 billion rupees. The gross non-performing asset ratio improved to 1.16% by end-September, down from 1.28% three months earlier.