- Axis Bank's Q4 net profit rose 9% QoQ to Rs 7,071 crore, beating estimates
- Net interest income increased 4.7% YoY to Rs 14,457 crore but missed estimates
- Gross NPA ratio improved to 1.23% and net NPA ratio eased to 0.37% QoQ
Axis Bank reported fourth-quarter profit that beat Bloomberg estimates after a tax write-back boosted earnings, while bad-loan ratios improved and loan growth remained strong.
Net profit for the quarter ended March 31 rose 9% from the previous three months to Rs 7,071 crore, marginally above Rs 6,958 crore Bloomberg estimate. The bottom line was down 0.6% from Rs 7,117 crore a year earlier. The lender said tax expense for the quarter was lower by Rs 2,193.2 crore after income-tax authorities allowed depreciation on intangible assets linked to the acquisition of Citi's India consumer business.
Net interest income, the difference between interest earned and interest paid, rose 5% from a year earlier to Rs 14,457 crore, missing the Rs 14,727 crore Bloomberg estimate. Net interest margin was 3.62%, compared with 3.64% in the previous quarter.
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Axis Bank Q4 Results Key Highlights (Standalone, YoY)
Net interest income up 4.7% to Rs 14,457 crore versus Rs 13,811 crore (Bloomberg Estimate: Rs 14,727 crore).
Net interest margin at 3.62% versus 3.64% QoQ.
Profit down 0.6% to Rs 7,071 crore versus Rs 7,117 crore (Estimate: Rs 6,958 crore).
Gross NPA at 1.23% versus 1.40% QoQ (Estimate: 1.36%).
Net NPA at 0.37% versus 0.42% QoQ (Estimate: 0.35%).
Provisions at Rs 3,522 crore versus Rs 1,359 crore YoY.
Loans and Deposits
Advances grew 19% from a year earlier and 6% from the December quarter to Rs 12,33,570 crore. Corporate loans rose 38%, SME loans increased 24% and retail loans grew 8%. Retail loans accounted for 55% of net advances.
Deposits rose 14% from a year earlier and 6% quarter on quarter to Rs 13,35,834 crore. The CASA ratio stood at 40%, up from 39% in the previous quarter.
Asset Quality
Gross non-performing assets ratio improved to 1.23% from 1.40% in the previous quarter and 1.28% a year earlier. Net non-performing assets ratio eased to 0.37% from 0.42% in the prior quarter. Gross slippages during the quarter fell to Rs 4,709 crore from Rs 6,007 crore in the December quarter.
Provision coverage ratio stood at 70%, while aggregate coverage including additional buffers was 166% of gross bad loans, the bank said.
Provisions and Capital
Provisions and contingencies rose to Rs 3,522 crore from Rs 2,246 crore in the previous quarter and Rs 1,359 crore a year earlier. Axis Bank also made an additional one-time standard asset provision of Rs 2,001 crore, citing macroeconomic and geopolitical uncertainty.
Operating profit fell 7% from a year earlier to Rs 10,013 crore, while core operating profit rose 0.4% to Rs 10,619 crore. Capital adequacy ratio stood at 16.42%, with common equity tier-1 ratio at 14.38%.
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