Axis Bank Q4 Results: Net profit at Rs 7,130 crore, beats estimates; asset quality improves

Axis Bank Q4 FY24 Results: Private sector lender Axis Bank on Wednesday reported a standalone net profit of Rs 7,129.7 crore for the quarter ended March 31, better than analysts' expectations. The bank had registered a net loss of Rs 5,728.4 crore for the corresponding period a year ago which included an exceptional loss of Rs 12,489.8 crore owing to expenses towards the acquisition of Citibank's consumer business in the country. 

Its net interest income, or the difference between interest earned and interest paid, stood at Rs 13,089 crore for the fourth and final quarter of the financial year 2023-24, as against Rs 11,742.2 crore for the year-ago period, according to a regulatory filing. 

According to Zee Business research, Axis Bank's fourth-quarter standalone net profit was estimated at Rs 6,250 crore and NII at Rs 12,746 crore. 

The private lender said its operating profit stood at Rs 10,536 crore for the quarter ended March 31, 2024, up 15 per cent in comparison to the previous three months as well as the quarter ended March 31, 2023. 

Its net interest margin (NIM), a key measure of profitability for a financial institution, improved by five basis points sequentially to 4.06 per cent. Zee Business analysts had pegged the lender's fourth-quarter NIM at 3.9 per cent. 

“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," said Amitabh Chaudhry, MD and CEO, Axis Bank. 

"In keeping with our credo 'Dil Se Open' and with DE&I as one of our core pillars, we have made progress in cultivating a diverse and inclusive workforce in a nurturing ecosystem," Chaudhry added. 

The lender's asset quality improved. Its gross non-performing assets (GNPAs) as a percentage of total loans came in at 1.43 per cent for the March quarter while net non-performing assets (NNPAs) stood at 0.31 per cent as against 1.58 per cent and 0.36 per cent for the previous three months respectively. 

Axis Bank logged Rs 1,185 crore in provisions and contingencies for the March quarter, as against Rs 1,028 crore for the October-December period. 

Axis Bank shares ended 0.7 per cent stronger at Rs 1,063.7 apiece on BSE ahead of the earnings announcement.

Axis Bank shares: Past performance

Axis Bank shares have rewarded investors with a return of almost 20 per cent in the past year, underperforming a 25.9 per cent rally in the headline Nifty50 index though outperforming a 12.4 per cent gain in the sectoral Nifty Bank gauge. Axis Bank shares finished the March quarter 5.0 per cent weaker, as against a 2.7 per cent rise and a 2.4 per cent fall in the Nifty50 and Nifty Bank barometres, respectively. 

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