Private lender Axis Bank on Thursday reported a standalone loss of Rs 5,728.42 crore for the March quarter compared with a profit of Rs 5,853.07 crore in December and Rs 4,117.77 crore in the same quarter last year. The huge loss came in on account of one-time non-recurring items aggregating to Rs 12,490 crore comprising full amortisation of intangibles and goodwill, which was equal to the value of purchase consideration paid on the acquisition of Citibank India consumer business.
Axis Bank said the impact of policy harmonisation on operating expenses and provisions and one-time stamp duty on the acquisition were also charged to the profit and loss account in the March quarter and reported as exceptional items.
Excluding exceptional items, profit came in at Rs 6,625, up 61 crore, the private bank said in a release.
Net Interest Income (NII) for the quarter rose 33 per cent YoY to Rs 11,742 crore. Net interest margin (NIM) for the quarter stood at 4.22 per cent, up 73 basis points YoY and 2 per cent sequentially.
The bank said its gross non performing assets as percentage of total assets came in at 2.02 per cent, down 80 bpsYoY and 36 basis points sequentially.
Fee income for the quarter rose 24 per cent YoY Rs 4,676 crore. Retail fees, Axis Bank said grew 31 per cent YoY and accounted for 69 per cent of the bank’s total fee income. Retail assets (excluding cards and payments) fee grew 22 per cent YoY.
Retail cards and payments fee grew 50 per cent YoY while corporate & commercial banking fees together grew 12 per cent YoY.
Trading gains for the quarter stood at Rs 83 crore; miscellaneous income at Rs 136 crore.
Non-interest income, which comprises of fee, trading profit and miscellaneous income, jumped 16 per cent YoY Rs 4,895 crore.
Axis Bank said it made Rs 306 crore in provision and contingencies for the quarter. Specific loan loss provisions stood at Rs 270 crore. The bank has not utilised Covid provisions during the quarter, Axis Bank said.
Overall, Axis Bank held cumulative provisions of Rs 11,928 crore. This is over and above the NPA provisioning included in our PCR calculations. These cumulative provisions translate to a standard asset coverage of 1.42 per cent as on March 31.
"On an aggregated basis, our provision coverage ratio (including specific + standard + additional + Covid provisions) stands at 145% of GNPA as on 31st March, 2023," the bank said.
Credit cost for the quarter ended 31st March, 2023 stood at 0.22 per cent, down 10 bps YoY and 43 bps QoQ.
The company board has recommended a final dividend of Re 1 of face value of Rs 2 each for FY23. The dividend, if approved by the members, will be paid on or after five days from the date of conclusion of the ensuing AGM.
Also read: Bajaj Finserv Q4 profit jumps 31% to Rs 1,769 crore; dividend announced
Also read: HUL Q4 results: Profit rises 13% to Rs 2,601 crore; FMCG major announces Rs 22 dividend