Axis Bank reported a standalone net profit of Rs 5,864 crore for Q2FY24 on Wednesday, marking a year-on-year increase of 10%. The growth was primarily driven by robust retail credit and increased consumer spending, which is expected to rise further due to the upcoming festive season in India. The bank's net interest income, a key profitability measure, rose by 19% to Rs 12,315 crore. Furthermore, the net interest margin reached 4.11%, indicating an improvement of 15 basis points year-on-year and a slight increase from the previous quarter. Despite these positive financial results, Axis Bank's share price experienced a minor decline, closing at Rs 956.85.
On the other hand, IPDC Finance Limited disclosed its unaudited financial statements for the first three quarters of 2023 on the same day, reporting a significant 70% year-on-year profit drop. The company's net profit fell to Tk 18 crore from Tk 62 crore. This decline was largely attributed to a 15% decrease in net interest income as a result of increased payouts to depositors and lenders. There was also a decrease in income from investments, commission exchanges, and brokerages. A rise in operating expenses by 16%, particularly in salaries and allowances, added further pressure on earnings.
The company's earnings per share (EPS) for the July-September quarter dropped sharply to Tk 0.23 from Tk 0.49. The overall EPS for January-September plunged from Tk 1.67 to Tk 0.49 due to a decrease in after-tax profit. Despite these financial challenges, IPDC managed to improve its cash flow through lower loan disbursements and deposit encashments.
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