Axis Bank q4 results Axis Bank standalone net profit for the private sector lender rose more than analysts had estimated in Q4FY24.
Net profit during the quarter stood at Rs 7,129.7 crore, compared to a loss of Rs 5,728.4 crore a year earlier. Analysts polled by Bloomberg had estimated a net profit of Rs 6,261 crore for the quarter.
And on sequential basis, net profit has increased by 17.4%.
Due to the merger of Citibank's consumer banking business with Axis Bank from March 1, 2023, Axis Bank's profits are not comparable on an annual basis.
Axis Bank Q4 Results The total income of the bank in the quarter increased from Rs 28,758 crore a year ago to Rs 35,990 crore.
The bank's net interest income increased by 11% year-on-year to Rs 13,089 crore in the quarter under review. Net interest margin for the March quarter increased by 5 basis points quarter-on-quarter to 4.06%.
Axis Bank Q4 results
Axis Bank grows 13% during Q4 results, total deposits grow 13% year-on-year to Rs 10.7 lakh crore
"Deposit growth will remain constrained and there will be liquidity crunch, which will result in credit growth also being affected," Axis Bank Chief Officer Amitabh Choudhary said.
Axis Bank q4 Results Axis Bank has taken deliberate planned steps to build on the strength of the deposit franchise, resulting in sustained growth in deposits till FY24. He said that this trend is likely to continue in FY 2025 also.
Axis Bank q4 Results Advances grew 15% year-on-year to Rs 9.65 lakh crore, of which retail loans, which form 60% of the bank's net advances, grew 20% year-on-year. On a sequential basis, advances increased by 4%. Home loans grew by 5% year-on-year, personal loans by 31% and credit card advances by 30%. Small business banking grew by 33% and rural loan portfolio grew by 30%.
Deputy Managing Director Rajeev Anand said demand for corporate loans is broad across all sectors and the pipeline of incremental demand remains quite strong. But tight liquidity conditions have forced corporates to borrow from the debt market, he said.
Anand said Axis Bank has capabilities in both debt capital markets and loan origination, which could further lead to "income from the wholesale bank side not coming through NII but through fee income".
The current account savings account ratio stood at 43% at the end of the quarter in March. The bank's fixed deposits grew 22% year-on-year to Rs 6.09 lakh crore during Q4. The bank's management said its credit-to-deposit ratio as of March 31 was 90.31%.
Axis Bank Q4 Results Provisions and contingencies during the quarter increased significantly to Rs 1,185.3 crore, of which loan loss provisions for the quarter stood at Rs 832 crore. These loan provisions are due to increase in the share of unsecured loans in the asset mix, the bank's Chief Financial Officer Punit Sharma said in a post-earnings call.
Axis Bank q4 Results The bank reclassified Rs 5,012 crore of Covid-19 provisions as other provisions. At the end of March the bank had cumulative provisions including standard and additional provisions besides non-performing assets of Rs 12,134 crore. These cumulative provisions are in addition to the NPA provision included in the coverage ratio calculation,” the bank said.
In media reports, the bank said there was no write back of provisions against its exposure in alternative investment funds. In the last quarter, the bank has provided Rs 181 crore for its investment in AIFs.
Axis Bank Q4 Results Credit cost for the quarter ended March stood at 0.32%.
Net slippage for the quarter was Rs 398 crore, while retail slippage was Rs 1,061 crore. Recoveries and upgradation were Rs 2,155 crore, and the bank waived off loans worth Rs 2,082 crore.
The bank's capital adequacy ratio stood at 16.63% and tier ratio at 13.8%.
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