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Axis Bank declared its Q4 results on Thursday. The results managed to beat the figures estimated by analysts, but its share fell over 6% on the bourses.
The private sector bank reported a 54% rise in net profit for the quarter ended in March 2022 supported by lower provisions and higher lending. The profit for the quarter was Rs 4,118 crores against Rs 2,677 crores for the corresponding quarter last year. Analysts made an estimate of Rs 3,909.5 crores.
The Bank's Net Interest Income, the core income of any bank, grew 17% YoY to Rs 8,815 crores as its Net Interest Margin grew to 3.49%. Other income saw a growth of 19% as it stood at Rs 4,223 crores.
"We have made steady progress across all dimensions of our business, considerable work has gone into strengthening our core, building granularity while at the same time ensuring that we are well-positioned to grow and leverage the opportunities opening up, hopefully with the pandemic behind us," said Amitabh Chaudhry, MD, Axis Bank.
Asset quality of the bank saw significant improvement as its gross slippages, new additions to bad loans, were Rs 3,981 crores, lower than last year, while recoveries were strong for the quarter standing at Rs 3,763 crores. Its Gross & Net NPA ratios were 2.82% & 0.73% respectively.
However, the bank reported a sharp decline in provisions, a staggering 54% as provisions stood at Rs 987.2 crores against Rs 2,167 crores last year. This brings the annual total of provisions to Rs 7,359.45 crores, an annual decline of 48.61% from Rs 14,321.73 crores, the figure for provisions in FY21.
The scrip witnessed a full gap-down opening despite posting good results. The share opened at Rs 765 per share as it witnessed a selling pressure all day yesterday. The stock fell to a low of Rs 725, a price level the stock hadn't touched for a month to close 6.57% down at Rs 728.6 per share.
Article by Aman Agarwal.
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