BENGALURU, Oct 25 Reuters India39;s Axis Bank reported a biggerthanexpected rise in secondquarter profit on Wednesday, helped by strong growth in loans.

The private lender39;s standalone net profit climbed 10 to 58.64 billion rupees 705.2 million in JulySeptember, beating expectations of 56.76 billion rupees, per LSEG data.

The standalone numbers do not include the business of subsidiaries.

Loan demand stayed strong as an uptick in consumer spending helped drive retail credit.

With the upcoming festivities, we are already seeing a surge in demand, which augurs well for business, the Mumbaibased bank39;s CEO Amitabh Chaudhry said in a statement.

The bank is not seeing a buildup of risk in its personal loan portfolio and expects to continue growing in this segment, Chaudhry said in a media call.

About 83 of the bank39;s personal loans go to existing customers, said the lender, which does not give out loans to the riskier segment of loans under 50,000 rupees.

The bank is seeing strong demand for loans from corporate clients, including for capital spending, it said.

Its asset quality improved, with gross nonperforming assets ratio easing to 1.73 from 1.96 in the last quarter.

Provisions and contingencies funds set aside to cover loan losses fell 21.2 from the previous quarter to 8.15 billion rupees.

Net interest income the difference between interest earned and interest expended rose 19 yearoveryear to 123.15 billion rupees.

Net interest margin, a barometer…