The financial world is abuzz with the latest quarterly earnings report from Axis Bank, one of India’s leading private lenders. The bank’s fourth-quarter results for the fiscal year 2024 are out, and the numbers paint a promising picture. Axis Bank’s performance has shown significant growth and stability, with strong net profits and improvements across various financial metrics.
Axis Bank Q4 Results Overview
The bank reported a standalone net profit of Rs 7,130 crore for the March quarter. This marks a 17% increase compared to the previous quarter’s Rs 6,071 crore profit. The improvement is even more remarkable when contrasted with the loss of Rs 5,728 crore in the same quarter last year.
Financial Highlights
- Net Interest Income (NII): Axis Bank’s NII grew by 11% YoY to Rs 13,089 crore, reflecting solid growth in lending activities.
- Net Interest Margin (NIM): The bank’s NIM for the quarter stood at 4.06%, showing an improvement over the previous quarter.
Key Metrics
- Fee Income: The quarter saw a significant 23% YoY increase in fee income to Rs 5,637 crore, driven by robust retail fees and other revenue streams.
- Other Income: Trading and miscellaneous income combined for Rs 6,766 crore, a 41% YoY increase.
Net Interest Income
Growth Analysis
The bank’s NII is a critical metric for gauging its financial health, and Axis Bank’s 11% YoY growth in this area indicates strong performance. NII is derived from the difference between interest earned on loans and interest paid on deposits.
Net Interest Margin
The NIM of 4.06% represents an increase and is a positive indicator of the bank’s efficiency in generating income relative to its interest expenses.
Other Income Sources
Fee Income Breakdown
Fee income saw a 23% YoY rise to Rs 5,637 crore. Retail fees constituted 74% of the total, with notable growth in retail cards and payments fee (up 39% YoY) and fees from third-party products (up 59% YoY).
Trading Income and Miscellaneous Income
The bank’s trading income gain stood at Rs 1,021 crore, while miscellaneous income came in at Rs 107 crore. These sources collectively contributed to the bank’s strong non-interest income.
Provisions and Contingencies
Loan Loss Provisions
Provisions and contingencies for Q4FY24 stood at Rs 1,185 crore. Specific loan loss provisions amounted to Rs 832 crore, indicating a careful approach to managing potential defaults.
Cumulative Provisions and Credit Cost
Axis Bank held cumulative provisions of Rs 12,134 crore at the end of Q4FY24. The bank’s provision coverage ratio, including specific, standard, and other provisions, stands at 159% of GNPA.
Non-Performing Assets (NPAs) and Slippages
Gross and Net NPA Figures
Axis Bank reported a Gross NPA of 1.43% against 1.58% in the previous quarter. Net NPA came in at 0.31% against 0.36% QoQ, highlighting a reduction in problematic loans.
Recovery Efforts
Recoveries from written-off accounts for the quarter totaled Rs 919 crore, reflecting the bank’s proactive stance on improving asset quality.
Conclusion
Axis Bank’s Q4 results are a testament to the bank’s resilience and growth in a dynamic financial environment. The significant increase in net profit, strong fee income, and prudent management of NPAs position Axis Bank as a robust player in the banking sector.
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FAQs
- What was Axis Bank’s net profit for Q4FY24?
- Axis Bank reported a standalone net profit of Rs 7,130 crore for the March quarter.
- What was the bank’s Net Interest Income (NII) for the quarter?
- Axis Bank’s NII for the quarter grew by 11% YoY to Rs 13,089 crore.
- How did fee income perform in Q4FY24?
- Fee income for the quarter rose 23% YoY to Rs 5,637 crore, driven by growth in retail cards and payments fee, retail assets, and third-party products.
- What was Axis Bank’s provision coverage ratio at the end of Q4FY24?
- The provision coverage ratio stood at 159% of GNPA as of March 31, 2024.
- How did the bank manage recoveries from written-off accounts?
- Axis Bank’s recoveries from written-off accounts for the quarter amounted to Rs 919 crore, showcasing its focus on asset quality improvement.
