Axis Bank Q4 Results: NII Increased By 11%, Net Profit Stayed At Rs 7,130 Cr, and A Share Dividend of Rs 1 Was Declared
The Axis Bank Limited Board of Directors accepted the financial results for the quarter and year ended March 31, 2024, at its meeting on Wednesday, April 24, 2024, in Mumbai. The bank’s operating profit increased to Rs 10,536 crores during the quarter, 15% YoY and 15% QOQ. In Q4FY24, core operating profit increased by 5% YoY and 8% QOQ to Rs 9,515 crores.
From a net loss of Rs 5,728 crores in Q4FY23 to a net profit of Rs 7,130 crores in Q4FY24, a 17% QOQ increase occurred. The bank’s Net Interest Income (NII) grew by 11% YoY and 4% QOQ to Rs 13,089 crores. The net interest margin (NIM) for Q4FY24 was 4.06%, representing a 5 bps QOQ rise.
FY24’s net interest income increased from Rs 42,946 crores to Rs 49,894 crores, a 16% YoY improvement. Rs 20,257 crores in fees were received, a 28% YoY increase. Operating profit rose by 16% from Rs 32,048 crores in FY23 to Rs 37,123 crores in FY24. Core operating profit rose by 10% in FY24, from Rs 32,291 crores to Rs 35,393 crores. The overall provisions for FY24 were Rs 4,063 crores, representing a 53% YoY rise. The net profit grew by 160% from Rs 9,580 crores in FY23 to Rs 24,861 crores in FY24.
Provision and contingencies came to a total of Rs 1,185 crores for Q4FY24. Particular loan loss provisions for Q4 of FY24 amounted to Rs 832 crores. The bank has cumulative provisions of Rs 12,134 crores at the end of Q4FY24 (standard plus extra non-NPA).
The bank’s balance sheet has increased by 12% YoY to Rs 14,77,209 crores as on March 31, 2024. At the conclusion of the quarter, total deposits increased by 6% QOQ and 13% YoY. Deposits into savings accounts increased by 2% YoY and 4% QOQ, while deposits into current accounts increased by 5% YoY and 18% QOQ. Retail term deposits increased by 17% YoY and 5% QOQ, contributing to a 22% YoY and 5% QOQ increase in total term deposits. CASA deposits accounted for 43 percent of total deposits. On a QAB basis, total deposits rose by 16% YoY and 5% QOQ; deposits in savings accounts rose by 10% YoY, while deposits in current accounts climbed by 4% YoY and 7% QOQ.
The bank’s advances as of March 31, 2024, were up 4% QOQ and 14% YoY to a total of Rs 9,65,068 crores. The rise in domestic net loans was 15% YoY and 4% QOQ. 60% of the bank’s net advances came from retail loans, which increased 20% year over year and 7% quarter over quarter to Rs 5,83,265 crores. at of March 31, 2024, the bank’s gross and net non-performing assets (NPA) were recorded at 1.43% and 0.31%, respectively, compared to 1.58% and 0.36% on December 31, 2023. Write-off account recoveries totaled Ra 919 crores during the quarter. Reported net slippages for the quarter was Rs 398 crores, adjusted for recovery from the written-off pool. Retail accounted for Rs 1,061 crores, CBG for Rs 62 crores, and wholesale for Rs 601 crores. Gross slippages for the quarter were Rs 3,471 crores, compared to Rs 3,715 crores in Q3FY24 and Rs 3,375 crores in Q4FY23.
“For the year ending March 31, 2024, the Board of Directors has proposed a dividend of Rs. 1 per equity share with a face value of Rs. 2 per equity share. Axis Bank released a statement saying, “This would be subject to approval by the shareholders at the next annual general meeting.”
Having added 125 branches during the quarter and 475 total in the FY24 period, the bank’s overall distribution network now consists of 5,377 domestic branches and extension counters spread across 2,963 centers, as opposed to 4,903 branches and extension counters spread across 2,741 centers as of March 31, 2023. By March 31, 2024, the bank had 16,026 ATMs and cash recyclers spread around the country, making it a well-represented entity. About 1,590 Virtual Relationship Managers were employed by the bank’s Axis Virtual Center as of March 31, 2024, across six sites.
