Axis Bank Q4 Results: Net profit at ₹7,130 crore, NII up 11%; 5 key highlights (2024)

“In FY24, Axis Bank charted a course of steady progress. While we relentlessly focused on our key priority areas - Bharat Banking, Digital and Sparsh, I believe we were also nimble in picking up some enticing new opportunities that came our way. Our Citi integration is on track, and we are inching towards the final milestone in the next six months,'' said Amitabh Chaudhry, MD & CEO, Axis Bank.

Also Read: Bain Capital to sell $430 million worth stake in Axis Bank through block deal: Report

Here are 5 key highlights of Axis Bank Q4 scorecard:

1.P&L Account: Net profit, operating profit

Axis Bank’s operating profit for the quarter stood at ₹10,536 crore, rising 15 per cent YoY. The core operating profit for the March quarter came in at ₹9,515 crore, rising five per cent YoY. The net profit stood at ₹7,130 crore in Q4FY24, compared to net loss of ₹5,728 crore in Q4FY23, and grew 17 per cent quarter-on-quarter (QoQ). The bank’s net interest margin (NIM) for Q4FY24 stood at 4.06 per cent and grew five bps QoQ.

2.Dividend

The private sector lender's board recommended a dividend of Re 1 per equity share for FY24. ‘’The Board of Directors has recommended dividend of Re 1 per equity share of face value of ₹2 per equity share for the year ended 31st March 2024. This would be subject to approval by the shareholders at the next annual general meeting,'' said Axis Bank in its regulatory filing to the stock exchanges.

3.Asset Quality

As of March 31, 2024, Axis Bank’s reported gross non performing assets (NPA) and net NPA levels were 1.43 per cent and 0.31 per cent respectively as against 1.58 per cent and 0.36 per cent as on December 31, 2023. Recoveries from written off accounts for the quarter was ₹919 crore.

Reported net slippages in the quarter adjusted for recoveries from written off pool was ₹398 crore. Gross slippages during the quarter were ₹3,471 crore, compared to ₹3,715 crore in Q3FY24 and ₹3,375 crore in the year-ago period. Recoveries and upgrades from NPAs during the quarter were ₹2,155 crore. The bank in the quarter wrote off NPAs aggregating ₹2,082 crore.

Also Read: How some Axis Bank credit cards became fraud targets

4. Provisions and contingencies

As on March 31, 2024, the bank’s provision coverage, as a proportion of Gross NPAs stood at 79 per cent, compared to 81 per cent in the year-ago period. Provision and contingencies for Q4FY24 stood at ₹1,185 crore. Specific loan loss provisions for Q4FY24 stood at ₹832 crores. The bank has not utilized Covid provisions during the quarter and these are reclassified to other provisions. The bank holds cumulative provisions (standard + additional other than NPA) of ₹12,134 crore at the end of Q4FY24.

5.Other income

Other income fee income for Q4FY24 grew 23 per cent YoY and nine per cent QoQ to ₹5,637 crore. Retail fees grew 33 per cent YOY and 12 per cent QoQ; and constituted 74 per cent of the bank’s total fee income. Retail cards and payments fee grew 39 per cent YoY and four per cent QoQ. Retail Assets (excluding cards and payments) fee grew 20 per cent YoY. Fees from third party products grew 59 per cent YoY and 44 per cent QoQ. The corporate and commercial banking fees together grew two per cent YoY to ₹1,478 crore.

Other key announcements

Axis Bank’s balance sheet grew 12 per cent YoY and stood at ₹14,77,209 crore as on March 31, 2024. The total deposits grew 13 per cent YoY and six per cent QoQ on period end basis, of which savings account deposits grew two per cent YoY and four per cent QoQ, current account deposits grew five per cent YoY and 18 per cent QoQ.

The total term deposits grew 22 per cent YoY and five per cent QoQ of which retail term deposits grew 17 per cent YoY and five per cent QoQ. The share of CASA deposits in total deposits stood at 43 per cent. The bank’s advances grew 14 per cent YoY and four per cent QoQ to ₹9,65,068 crore as on March 31, 2024.

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Published: 24 Apr 2024, 04:48 PM IST