Axis Bank Q4 Results: Net Profit Stood At Rs 7,130 Cr, NII Grew By 11%; Rs 1/Share Dividend Declared

At its meeting on Wednesday, April 24, 2024, in Mumbai, the Board of Directors of Axis Bank Limited approved the financial results for the quarter and year ended March 31, 2024. Operating profit for the bank climbed 15% YOY and 15% QOQ during the quarter, to Rs 10,536 crores. Core operating profit climbed by 8% QOQ and 5% YOY to Rs 9,515 crores in Q4FY24. In Q4FY24, net profit climbed 17% QOQ to Rs 7,130 crores from a net loss of Rs 5,728 crores in Q4FY23. The Net Interest Income (NII) of the bank increased to Rs 13,089 crores, an 11% YoY and 4% QOQ growth. With a 5 bps QOQ growth, the net interest margin (NIM) for Q4FY24 was recorded at 4.06%.

FY24's net interest income improved 16% YoY to Rs 49,894 crores from Rs 42,946 crores. Fee income was Rs 20,257 crores, up 28% YoY. From Rs 32,048 crores in FY23 to Rs 37,123 crores in FY24, operating profit increased by 16%. From Rs 32,291 crores to Rs 35,393 crores in FY24, the core operating profit increased by 10%. With a 53% YoY growth, the total provisions for FY24 were Rs 4,063 crores. From Rs 9,580 crores in FY23 to Rs 24,861 crores in FY24, the net profit increased by 160%.
For Q4FY24, provision and contingencies totaled Rs 1,185 crores. For Q4 of FY24, specific loan loss provisions were Rs 832 crores. At the end of Q4FY24, the bank has cumulative provisions (standard + additional other than NPA) of Rs 12,134 crores.

As of March 31, 2024, the bank's balance sheet has grown by 12% YoY to Rs 14,77,209 crores. On a period-end basis, total deposits surged by 13% YoY and 6% QOQ. Savings account deposits jumped by 2% YoY and 4% QOQ, while current account deposits climbed by 5% YoY and 18% QOQ. Total term deposits rose by 22% YoY and 5% QOQ, of which retail term deposits bumped by 17% YoY and 5% QOQ. 43% of all deposits were made up of CASA deposits. Total deposits increased by 16% YoY and 5% QOQ on a QAB basis; savings account deposits increased by 10% YoY, while current account deposits increased by 4% YoY and 7% QOQ.

As of March 31, 2024, the bank's advances were up 14% YoY and 4% QOQ to a total of Rs 9,65,068 crores. Domestic net loan growth was 4% QOQ and 15% YoY. Retail loans contributed to 60% of the bank's net advances, up 20% YoY and 7% QoQ to Rs 5,83,265 crores. The bank reported gross non-performing assets (NPA) and net non-performing assets (NPA) of 1.43% and 0.31%, respectively, as of March 31, 2024, compared to 1.58% and 0.36% on December 31, 2023. For the quarter, there were Ra 919 crores in recoveries from written-off accounts. Adjusted for recoveries from the written-off pool, reported net slippages for the quarter came to Rs 398 crores, of which retail accounted for Rs 1,061 crores, CBG for Rs 62 crores, and wholesale for Rs 601 crores. There were Rs 3,471 crores in gross slippages for the quarter as against Rs 3,715 crores in Q3FY24 and Rs 3,375 crores in Q4FY23.

"The Board of Directors has recommended dividend of Rs 1 per equity share of face value of Rs 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 a statement.

In comparison to 4,903 domestic branches and extension counters spread across 2,741 centres as of March 31, 2023, the bank's overall distribution network now consists of 5,377 domestic branches and extension counters spread across 2,963 centres, having added 125 branches during the quarter and 475 overall in the FY24 period. With 16,026 ATMs and cash recyclers located around the nation as of March 31, 2024, the bank remained well-represented. As of March 31, 2024, the Axis Virtual Centre of the bank employs around 1,590 Virtual Relationship Managers in six locations.