On Wednesday, Axis Bank revealed a standalone net profit of Rs 7,130 crore for the quarter that concluded on March 31, 2024. In comparison, the bank had previously recorded a loss of Rs 5,728.42 crore for the same quarter in the previous fiscal year. On Wednesday, April 24, the Bank revealed its January-March quarter results for the fiscal 2023–24 (Q4 FY24).
The figures showed a net profit of ₹7,130 crore, up from a loss of ₹5,728.4 crore in the same period the previous year. Net interest income (NII), or the difference between interest earned and paid, for private sector lenders increased 11.5% year over year. To ₹13,089 crore from ₹11,742 crore in the same period last year.
Lights on Bank Q4 scorecard
Loan expansion, All company segments saw loan growth from the lender, with advances increasing 4% and 15% year over year. On a YoY and QoQ basis, the rural loans increased by 30% and 15%, respectively. The YoY growth rate of small business banking loans was 33%. While the QoQ growth rate was 7%. YoY growth for the mid-corporate (MC) book was 22%.
As of March 31, 2024, the bank’s balance sheet had grown 12% YoY to Rs 14,77,209 crore. On a period-end basis, total deposits increased by 13% YoY and 6% QoQ; savings account deposits increased by 2% YoY and 4% QoQ. With total term deposits growing by 22% YoY and 5% QoQ, of which retail term deposits rose by 17% YoY and 5% QoQ. Current account deposits increased by 5% YoY and 18% QoQ. 43% of all deposits were made up of CASA deposits.
Digital payments: In Q4FY24, the bank issued 12.4 lakh credit cards. 96% of all financial transactions made by individual consumers in Q4 of FY24 were digital, while 79% of all retail term deposits (by volume) were opened online in FY24. Together with a 52% YoY increase in the volume of mobile banking transactions in Q4FY24. The bank also recorded a 39% YoY gain in the total UPI transaction value.
Asset of Axis Bank
Axis Bank released impressive Q4 FY24 results, with interest income up 21.9% YoY. To ₹29,224 crore from ₹23,969 crore in the same time the previous year. The bank’s asset quality has also improved, as seen by the GNPA and NNPA figures for the quarter, which were 1.43% and 0.31% respectively, compared to 2.02% and 0.39% for the same period last year.
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%, respectively, as of December 31, 2023. For the quarter, recoveries from written-off accounts totaled Rs 919 crore.
Net slippages were reported at Rs 398 crore for the quarter, adjusted for recovery from the written-off pool. There were gross slippages of Rs 3,471 crore during the quarter, as opposed to Rs 3,715 crore in Q3FY24 and Rs 3,375 crore in Q4FY23. The amount of NPA upgrades and recoveries made during the quarter was Rs 2,155 crore. During the quarter, the bank wiped off NPAs of Rs 2,082 crore.
Other Income source of Axis Bank
The quarter’s fee income was Rs 5,637 crore, up 23% YoY. Retail fees increased by 33% year over year and made up 74% of the bank’s overall fee income. Retail card and payment fees increased by 39% year over year. The retail assets charge increased by 20% year over year, excluding cards and payments. Third Party Product fees increased by 59% year over year, according to the bank.
Together, the fees for corporate and commercial banking increased by 2% year over year to Rs 1,478 crore. For the quarter, trade income gain totaled Rs 1,021 crore, while miscellaneous income was Rs 107 crore. Bank said, “Overall, non-interest income (comprising of fee, trading and miscellaneous income) for Q4FY24 grew 41% YOY and 22% QOQ to Rs 6,766 crore”.
