Axis Bank Q4 Performance: Axis Bank, one of India’s leading private sector lenders, recently unveiled its Q4 financial results, showcasing a commendable performance amidst challenging market conditions. The bank reported impressive growth across key financial metrics, reflecting its resilience and adaptability in a dynamic banking landscape. In this blog post, we delve into the highlights of Axis Bank’s Q4 results and analyze the factors driving its success.

Axis Bank Q4 Performance: Stellar Q4 Financial Performance

Axis Bank’s Q4 results painted a promising picture, with the bank reporting a net profit of ₹7,130 crore. This impressive figure underscores the bank’s robust operational efficiency and strategic initiatives implemented to drive profitability.

Axis Bank Q4 Performance: Key Financial Highlights

1. Net Interest Income (NII) Surge

• Axis Bank reported an operating profit of ₹10,536 crore for the quarter, marking a 15% year-on-year increase. The core operating profit for the March quarter was ₹9,515 crore, up by five percent compared to the previous year. The net profit for Q4FY24 reached ₹7,130 crore, a significant improvement from a net loss of ₹5,728 crore in Q4FY23, registering 17% quarter-on-quarter growth. The bank’s net interest margin (NIM) for Q4 FY24 was 4.06%, reflecting a five basis point increase quarter-on-quarter.

2. Dividend Declaration

• The private sector lender’s board has proposed a dividend of Re 1 per equity share for the financial year 2024. “The Board of Directors has recommended a dividend of Re 1 per equity share with a face value of ₹2 for the year ending March 31, 2024. This recommendation is subject to approval by the shareholders at the upcoming annual general meeting,” Axis Bank stated in its regulatory filing with the stock exchanges.

3. Asset Quality

• As of March 31, 2024, Axis Bank reported gross non-performing assets (NPA) and net NPA levels of 1.43% and 0.31%, respectively, down from 1.58% and 0.36% as of December 31, 2023. The bank recorded recoveries of ₹919 crore from written-off accounts during the quarter.
• The reported net slippages for the quarter, adjusted for recoveries from the written-off pool, stood at ₹398 crore. Gross slippages were ₹3,471 crore for the quarter, compared to ₹3,715 crore in Q3FY24 and ₹3,375 crore in the same period last year. Recoveries and upgrades from NPAs amounted to ₹2,155 crore during the quarter. Additionally, the bank wrote off NPAs worth ₹2,082 crore in the quarter.

4. Provisions and Contingencies

• As of March 31, 2024, the bank’s provision coverage ratio, calculated as a percentage of gross NPAs, was 79%, down from 81% in the same period last year. The provision and contingencies for Q4FY24 totaled ₹1,185 crore, with specific loan loss provisions amounting to ₹832 crore. The bank did not utilize COVID provisions during the quarter, which were reclassified under other provisions. As of the end of Q4FY24, the bank held cumulative provisions (including standard and additional provisions other than NPA) of ₹12,134 crore.

5. Other Income

• In Q4FY24, the bank’s other income from fee income increased by 23% YoY and 9% QoQ, reaching ₹5,637 crore. Retail fees saw robust growth of 33% YoY and 12% QoQ, accounting for 74% of the bank’s total fee income. Fees from retail cards and payments surged by 39% YoY and 4% QoQ, while fees from other retail assets (excluding cards and payments) grew by 20% YoY. Income from third-party products experienced significant growth, jumping by 59% YoY and 44% QoQ. On the other hand, corporate and commercial banking fees combined saw a modest 2% YoY growth, amounting to ₹1,478 crore.

Axis Bank Q4 Performance: Other Key Announcements

As of March 31, 2024, Axis Bank’s balance sheet expanded by 12% YoY, reaching ₹14,77,209 crore. Total deposits increased by 13% YoY and 6% QoQ, with savings account deposits growing by 2% YoY and 4% QoQ, and current account deposits rising by 5% YoY and a substantial 18% QoQ.

Term deposits saw significant growth of 22% YoY and 5% QoQ, driven by a 17% YoY increase in retail term deposits. CASA deposits accounted for 43% of the total deposits. The bank’s advances also showed a positive trend, growing by 14% YoY and 4% QoQ, reaching ₹9,65,068 crore by the end of Q4FY24.

Axis Bank Q4 Performance: Conclusion

Axis Bank’s Q4 results stand as a testament to its resilient business model, prudent risk management practices, and customer-centric approach. The bank’s strong financial performance, coupled with its strategic initiatives, positions it well to navigate the evolving banking landscape and capitalize on emerging opportunities. As Axis Bank continues to focus on driving sustainable growth and value creation, stakeholders can look forward to the bank’s continued commitment to excellence and innovation in the banking sector.