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Axis Bank presented its quarterly profits report for the fourth quarter of the fiscal year 2023–24 (Q4FY24) on April 24, marking a significant development in the financial sector. The private sector lender has had a notable recovery, as evidenced by the report's large increase in net profit and other important financial parameters.
Axis Bank witnessed a remarkable surge in net profit for Q4FY24, reporting a net profit of ₹7,130 crore. This stands in stark contrast to the corresponding period last year, where the bank reported a loss of ₹5,728.4 crore. The impressive turnaround in net profit reflects the bank's strategic initiatives and operational efficiency improvements.
Source: Business Standards
Key Financial Highlights:
- Net Interest Income (NII) Growth: One of the key highlights of the Q4FY24 report is the significant growth in Net Interest Income (NII). The NII rose by 11.5% year-on-year to ₹13,089 crore, compared to ₹11,742 crore in the previous year, showcasing the bank's robust interest income generation capabilities.
- Operating Profit: The operating profit for the quarter stood at ₹10,536 crore, marking a notable increase of 15% year-on-year. The core operating profit for the quarter also witnessed a substantial rise, reaching ₹9,515 crore, reflecting the bank's strong operational performance.
- Dividend Declaration: In a move to reward its shareholders, Axis Bank's board recommended a dividend of Re 1 per equity share for the fiscal year 2023-24. This decision underscores the bank's commitment to delivering value to its shareholders.
- Asset Quality Improvement: Axis Bank demonstrated improvements in asset quality, with reported gross non-performing assets (NPA) and net NPA levels standing at 1.43% and 0.31% respectively as of March 31, 2024. This reflects a reduction from the levels reported in the previous quarter, indicating effective asset management strategies.
- Provisions and Contingencies: The bank's provision coverage ratio stood at 79% as of March 31, 2024, compared to 81% in the previous year. Provisions and contingencies for Q4FY24 amounted to ₹1,185 crore, reflecting the bank's prudent approach towards risk management.
- Other Income Growth: Axis Bank witnessed significant growth in other income, with fee income for Q4FY24 growing by 23% year-on-year to ₹5,637 crore. This growth was driven by robust performance across retail fees, third-party products, and corporate banking fees.
Amitabh Chaudhry, MD & CEO of Axis Bank, expressed satisfaction with the bank's performance, stating, "In FY24, Axis Bank charted a course of steady progress." Chaudhry highlighted the bank's focus on key priority areas such as Bharat Banking, Digital, and Sparsh, along with successful integration efforts, including the ongoing Citi integration.
Axis Bank's impressive Q4 results underscore its resilience and ability to navigate challenging market conditions effectively. The significant improvements in key financial metrics, coupled with strategic initiatives, position the bank for sustainable growth and value creation in the future.
