Results for the fourth quarter of Axis Bank: Net Profit Jumps 54% YoY To Rs 4,118 Crore, NII Up 17%;
Private sector lender Axis Bank on Thursday announced a net profit of Rs 4,118 crore for the quarter ending in March 2022, up 54% from Rs 2,677 crore in the same quarter last year. To Rs 8,819 crore, its net interest income (NII) increased 17% year over year.
From January through March 2022, the lender's net interest margin (NIM) was 3.49 percent. Axis Bank reported in a BSE filing that its non-interest income, which includes fees, trading profits, and other income, was Rs 4,223 crore in the March 2022 quarter, up 19% from the same period last year.
The lender's fee income for the quarter ending in March 2022 increased 11% year over year to Rs 3,758 crore. Retail fees increased 14% year over year and made up 66% of the bank's total fee income.
Its operating profit for the three months ending in March 2022 increased 13% year over year to Rs 6,466 crore.
It had Rs 602 crore in particular loan loss provisions for the quarter, down from Rs 790 crore in the quarter ending in December 2021. "During the quarter, the bank did not use COVID-19 provisions. After Q4FY22, the bank has cumulative provisions (standard and additionally other than NPA) of Rs 12,428 crore "It read.
For the years 2021–2022, the bank has declared a dividend of Rs 1 per equity share. "For the fiscal year ending March 31, 2022, the board of directors has recommended a dividend of Rs 1 per equity share with a face value of Rs 2 per equity share. At the following annual general meeting, the shareholders must approve this."
Regarding asset quality, the bank reported 2.82 percent of gross non-performing assets (GNPA) and 0.73 percent of net NPAs as of March 31, 2022, respectively, down from 3.17 percent and 0.91 percent as of December 31, 2021.
Gross slippages for the quarter were Rs 3,981 crore, compared to Rs 4,147 crore and Rs 5,285 crore for the quarters ending in December 2021 and March 2021, respectively. In a statement, Axis Bank stated that "recoveries and upgrades from NPAs during the quarter were Rs 3,763 crore."
In addition, it stated that the quarter's net slippages in NPAs (before write-offs) were Rs 218 crores as opposed to Rs 860 crore in Q3FY22 and Rs 1,822 crore in Q4FY21. "The wholesale banking slippages were negative Rs 60 crore, the commercial banking slippages were Rs 85 crore, and the net slippages in retail were Rs 193 crore. In addition to the aforementioned recoveries and renovations, recoveries from written-off accounts totaled Rs 719 crore."
Amitabh Chaudhry, the MD, and CEO of Axis Bank stated, "We have made continuous development across all of our business's aspects. A lot of effort has gone into making sure we are well-positioned to grow and take advantage of the opportunities that are opening up, hopefully with the epidemic behind us. This includes strengthening our core and developing granularity."
By its strategic goals, the bank should become a premium franchise thanks to the groundbreaking Citi deal, he continued. "We look forward to further enhancing our success in the upcoming financial year with smart goods, services, partnerships, and talent on our side."
According to the quarterly average balance (QAB), its total deposits increased by 19% year over year, while on a period-end basis, they increased by 18%. On a QAB basis, deposits in savings accounts increased by 19% YoY and 2% q-o-q, while deposits in current accounts increased by 19% YoY and 3% q-o-q.
The bank's advances increased by 15% annually and 6% quarterly as of March 31, 2022, reaching Rs 7,07,696 crore. The ratio of loans to deposits at the bank was 86%. Retail loans made up 57% of the bank's net advances and increased by 21% year over year and 9% quarter over quarter, according to Axis Bank.
The bank's net profit for the entire fiscal year increased by 98% to Rs 13,025 crore in 2021–22 from Rs 6,588 crore in FY21. Net interest income increased 13% year over year to Rs 33,132 crore from Rs 29,239 crore for FY22. Fee revenue increased 22% year over year to Rs 13,001 crore.
From Rs 23,128 crore in FY21 to Rs 24,742 crore in FY22, operating profit increased by 7%. In comparison to the same period last fiscal year, total provisions for FY22 were Rs 7,359 crore, a decrease of 49%.