Axis Bank Q4FY24: Net profit at Rs 7,130 crore; NII grows 11% to Rs 13,089 cr
Mumbai: Axis Bank posted a net profit of Rs 7,130 crore in the fourth fiscal quarter, a significant turnaround from the Rs 5,762 crore loss in the same period last year following its acquisition of Citi Bank's India consumer division.
The bank's net interest income (NII), representing the variance between interest income from lending and interest paid to depositors, increased to Rs 13,089 crore, marking an 11.47 percent rise from the previous year's Rs 11,742 crore.
Axis Bank's gross non-performing asset (NPA) ratio dropped to 1.43 percent from 2.02 percent year-on-year, with net NPAs decreasing to 0.31 percent from 0.39 percent.
The board proposed a dividend of Rs 1 per equity share with a face value of Rs 2 for the fiscal year ending March 31, 2024.
The bank's gross slippage ratio declined by 28 basis points year-on-year to 1.48 percent, while the net slippage ratio was 0.57 percent.
Slippage ratio is calculated by dividing the total value of loans that have become non-performing during the period by the total value of the loan portfolio at the beginning of the period. It is a measure that indicates the proportion of loans that have transitioned from being performing loans to non-performing loans during a specific period.
Provisions and contingencies for the fourth quarter of fiscal year 2024 amounted to Rs 1,185 crores, with specific loan loss provisions reaching Rs 832 crores.
The bank maintained cumulative provisions (standard + additional excluding NPA) of Rs 12,134 crores by the end of FY24.
The bank reported a net profit for the full FY24 at Rs 24,861 crore versus Rs 9,580 crore in FY23.
Amitabh Chaudhry, MD & CEO, Axis Bank said: “In FY24, Axis Bank charted a course of steady progress. While we relentlessly focused on our key priority areas - Bharat Banking, Digital and Sparsh (our customer obsession program), I believe we were also nimble in picking up some enticing new opportunities that came our way. Our Citi integration is on track, and we are inching towards the final milestone LD2 in the next six months."
Axis Bank's net interest margin (NIM), which represents the difference between the interest earned on loans and the interest paid on deposits, expressed as a percentage, decreased to 4.06% from 4.22% compared to the previous year. However, it experienced a slight increase from 4.01% in the previous quarter.
Additionally, the bank's board authorized a fundraising initiative through the issuance of debt instruments totalling Rs 35,000 crore, and an additional Rs 20,000 crore via equity.
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