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Axis Bank has reported
strong net profit of Rs 7129.67 crore for the quarter ended March 2024
(Q4FY2024). The bank had reported net loss Rs 5728.42 crore for Q4FY2023
on account of expenses relating to acquisition of Citibank
India Business.
The bank has posted healthy 11% growth
in net interest income (NII), while the core fee income of the bank improved 23%
in Q4FY2024. The Net Interest Margin (NIM) of the bank rose on sequential basis
to 4.06% in Q4FY2024 from 4.01% in Q3FY2024, while eased from 4.22% in the
corresponding quarter of previous year.
On business front, the bank as has
posted 13% growth in business with 14% jump in loan book. The asset quality of
the bank has improved in Q4FY2024. Bank has raised the credit to deposit ratio
to 90.3% at end March 2024 from 89.3% at end March 2023. The CASA deposit ratio
of the bank has moved up to 43.0% at end March 2024 from 42.1% end December
2023, while eased from 47.2% at end March 2023.
Asset quality improves: The bank has improved asset quality in
Q4FY2024.
The fresh slippages of loans stood at
Rs 3471 crore in Q4FY2024 compared with 3715 crore in previous quarter and Rs 3375
crore in the corresponding quarter last year.
The recoveries and upgradations of NPAs
was at Rs 2155 crore and the write-off of loans was at Rs 2082 crore in
Q4FY2024.
The standard restructured loan book of
the bank stood at Rs 1528 crore end March 2024 that translates to 0.14% of
the gross customer assets. The Bank carries a provision of 20% on restructured
loans, which is in excess of regulatory limits.
Provision coverage ratio was steady at 94.00%
at end March 2024 compared to 94.00% a quarter ago and 94.00% a year ago.
The capital adequacy ratio of the bank
stood at 16.6% with Tier I ratio at 14.2% at end March 2024.
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Asset Quality
Indicators: Axis Bank
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Mar-24
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Dec-23
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Sep-23
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Jun-23
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Mar-23
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Variation
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QoQ
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YoY
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Gross NPA (Rs Crore)
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15127.12
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15893.01
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16756.74
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18158.23
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18604.23
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-5
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-19
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Net NPA (Rs Crore)
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3247.47
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3526.87
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3441.25
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3703.56
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3558.92
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-8
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-9
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% Gross NPA
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1.43
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1.58
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1.73
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1.96
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2.02
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-15
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-59
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% Net NPA
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0.31
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0.36
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0.36
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0.41
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0.39
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-5
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-8
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% PCR
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94.00
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94.00
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94.00
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93.00
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94.00
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0
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0
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% CRAR - Basel III
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16.63
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14.88
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16.56
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17.08
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17.64
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175
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-101
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% CRAR - Tier I - Basel III
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14.20
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12.43
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13.80
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14.24
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14.57
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177
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-37
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Variation in basis
points for figures given in percentages and in % for figures in Rs crore
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Business Highlights:
Healthy business growth: The business of the bank has increased 13%
yoy to Rs 2033710 crore end March 2024, driven by 14% surge in advances to Rs 965069
crore. Deposits moved up 13% to Rs 1068641 crore at end March 2024.
CASA deposits ratio improves on
sequential basis: The CASA deposits of the bank increased 3% yoy to Rs 459401 crore
at end March 2024. The current account deposits increased 5% to Rs 157268 crore,
while saving account deposits rose 2% to Rs 302133 crore end March 2024.
The CASA ratio declined to 43.0% at end
March 2024 compared to 47.2% at end March 2023, while improved from 42.1% a
quarter ago.
The term deposits have increased 22% to
Rs 609240 crore end March 2024.
Healthy loan growth: Advances growth was driven by retail
loans rising 20% yoy to Rs 583265 crore at end March 2024, while credit to MSME
increased 17% to Rs 104718 crore at end March 2024. The corporate credit has rose
6% to Rs 250293 crore end March 2024. The overseas credit dipped 17% to Rs 26793
crore end March 2024.
Investment book of the bank increased 15%
yoy to Rs 331527 crore at end March 2024. The AFS book moved up 10% to Rs 76251
crore, while HTM book rose 2% to Rs 215493 crore at end March 2024.
Margins improve: The bank has showed 68 bps yoy jump in
cost of deposits to 5.43% in Q4FY24. NIM has declined 16 bps yoy, while rose 5
bps qoq to 4.06%.
Branch expansion: The bank has added 125 branches and 95 ATMs
in Q4FY2024, taking overall tally to 5377 branches and 16026 ATM`s end March
2024.
Book value of the bank stood at Rs 489.3 per share
at end March 2024, while the adjusted book value (net of NNPA and 10% of
restructured advances) was Rs 478.3 per share at end March 2024.
Quarterly Performance
NII rises as NIM improves: Bank has recorded 22% increase in the
interest earned at Rs 29224.54 crore, while interest expenses increased 32% to
Rs 16135.54 crore in Q4FY2024. NII improved 11% to Rs 13089.00 crore in the
quarter ended March 2024.
Healthy growth in the core fee income: Bank has posted strong 23% growth in
core fee income to Rs 5637 crore, while the treasury income surged 1130% to Rs 1021
crore supporting 41% jump in the overall non-interest income to Rs 6765.79 crore
in the quarter ended March 2024. Other income declined 21% to Rs 108 crore
Stable expenses ratio: The operating expenses of the bank
increased 27% to Rs 9319.09 crore, as employee expenses increased 35% to Rs 2923.54
crore in Q4FY2024. Other expenses moved up 23% to Rs 6395.55 crore. Cost to
income ratio rose to 46.9% in Q4FY2024 compared with 44.5% in Q4FY2023. The
Operating Profit increased 15% to Rs 10535.70 crore.
Provisions and contingencies jump: The bank has showed 288% surge in
provisions to Rs 1185.31 crore. The loan loss provisions zoomed 208% to Rs 832 crore,
while other provisions rebounded to Rs 368 crore. the bank has written back standard
asset provisions of Rs 15 crore in Q4FY2024.
Effective tax rate was steady at
23.8% in Q4FY2024
from 23.7% in Q4FY2023. Net Profit came in at Rs 7129.67 crore during quarter
ended March 2024.
Wealth
Management Business - Burgundy
The Bank’s wealth management business is among the
largest in India with assets under management (AUM) of Rs 5,36,609 crore end
March 2024 that grew 50% YOY and 6% QOQ. Burgundy Private, the Bank’s
proposition for high and ultra-high net worth clients, covers 10,651 families.
The AUM for Burgundy Private increased 33% YOY and 3% QOQ to Rs 1,83,048 crore.
Subsidiaries’
Performance
The Bank’s domestic subsidiaries delivered steady
performance with FY24 PAT of Rs 1,591 crore, up 22% YOY.
Axis
Finance has been investing in building a strong customer
focused franchise. Its overall assets under finance grew 38% YOY. Retail book
grew 51% YOY and constituted 45% of total loans, up from 28% three years ago.
The focus in its wholesale business continues to be on well rated companies and
cash flow backed transactions. Axis Finance remains well capitalized with total
Capital Adequacy Ratio of 19.24%. The book quality remains strong with net NPA
at 0.28%. Axis Finance FY24 PAT was Rs 610 crore, up 28% YOY from Rs 475 crore
in FY23.
Axis
AMC’s overall QAAUM grew 14% YOY to Rs 2,74,265 crore.
Its FY24 PAT stood at Rs 414 crore.
Axis
Capital FY24 PAT stood at Rs 150 crore and completed 90
investment banking transactions in FY24.
Axis
Securities’ broking revenues for FY24 grew 58% YOY to Rs 1,143
crore. Its FY24 PAT grew 48% YOY and stood at Rs 301 crore.
Financial Performance FY2024:
Bank has posted strong net profit of Rs
24861.43 crore in the year ended March 2024 (FY2024). The net interest income
increased 16% to Rs 49894.48 crore, while non-interest income moved up 39% to
Rs 22441.96 crore, pushing up net total income by 22% to Rs 72336.44 crore in
FY2024. The operating expenses increased 30% to Rs 35213.28 crore, while
provision and contingencies galloped 53% to Rs 4063.09 crore, allowing profit
before tax to increase 12% to Rs 33060.07 crore in FY2024. The cost-to-income
ratio rose to 48.7% in FY2024 compared to 45.8% in FY2023. An effective tax
rate declined to 24.8% in FY2024 compared to 43.3% in FY2023. The net profit
has increased 160% to Rs 24861.43 crore in FY2024.
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Axis Bank: Results
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Particulars
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2403 (3)
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2303 (3)
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Var %
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2403 (12)
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2303 (12)
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Var %
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Interest Earned
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29224.54
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23969.76
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22
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109368.63
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85163.77
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28
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Interest Expended
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16135.54
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12227.60
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32
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59474.15
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42218.02
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41
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Net Interest Income
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13089.00
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11742.16
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11
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49894.48
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42945.75
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16
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Other Income
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6765.79
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4787.80
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41
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22441.96
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16143.42
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39
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Net Total Income
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19854.79
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16529.96
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20
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72336.44
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59089.17
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22
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Operating Expenses
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9319.09
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7362.35
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27
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35213.28
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27040.86
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30
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Operating Profits
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10535.70
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9167.61
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15
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37123.16
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32048.31
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16
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Provisions & Contingencies
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1185.31
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305.77
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288
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4063.09
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2652.64
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53
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Profit Before Tax
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9350.39
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8861.84
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6
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33060.07
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29395.67
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12
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EO
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0.00
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-12489.82
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-
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0.00
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-12489.82
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-
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PBT after EO
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9350.39
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-3627.98
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LP
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33060.07
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16905.85
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96
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Provision for tax
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2220.72
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2100.44
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6
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8198.64
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7326.17
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12
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PAT
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7129.67
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-5728.42
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LP
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24861.43
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9579.68
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160
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EPS*(Rs)
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92.4
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49.3
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80.5
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54.0
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Adj BV (Rs)
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478.3
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395.5
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478.33
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395.48
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* Annualized on current equity
of Rs 617.4 crore. Face Value: Rs 2, Figures in Rs crore
PL: Profit to Loss, LP: Loss to
Profit
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Source: Capitaline Corporate
Database
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