Private lender, the Axis Bank, reported 70 per cent increase in its net profit for the first quarter ended June 30, thanks to a surge in non-interest incomes during Q1.

The bank's strategy to focus on low-cost deposits, besides strong growth in non-interest income helped, it to cover losses due to adverse conditions of the global market. Mr Somnath Sengupta, President, Finance and Accounts of Axis Bank said: "Our non-interest income continues to do well. Within that, although our fee income growth was lower, the treasury income was very profitable."

The bank's fee income stood at Rs 627 crore; while trading profit, including securities worth Rs 149 crore, corporate bonds worth Rs 70 crore and equity worth Rs 77 crore, increased to Rs 326 crore during the first quarter.

Axis's net Interest Margin stood at 3.34 per cent, as compared to 3.35 per cent during the last financial year. Similarly, the low-cost CASA deposits (current account and savings account) contributed 37 per cent in the total deposit against 38 per cent in the previous fiscal.

Vaibhav Agrawal, VP Research, Banking Angel Broking, said: "Axis Bank's operating performance in terms of fee income and net interest income remained healthy, albeit slowing down in line with the sectoral trends."