Mumbai: Axis Bank, the country’s third-largest private sector lender by assets, reported a 38% year-on-year increase in net profit to 7,003 crore for the September quarter, supported by strong loan growth, higher net interest income and improving asset quality.

The net interest income rose 11.8% YoY to 15,371 crore. Net interest margin or core profitability, stood at 3.36%, including the impact of foreign currency non-resident bank (FCNR-B) deposits. Excluding this impact, the margin was 3.47%, compared with 3.46% in the preceding quarter. Total advances grew 23% year-on-year.