Axis Bank Q4 results: Standalone PAT rises 54% YoY to Rs 4,118 cr, NII up 17%

Private lender Axis Bank on Thursday reported 54 per cent rise in standalone net profit at Rs 4,118 crore for the quarter ended 31 March, 2022 on strong growth performance across deposits and loans, improving return ratios. The lender had reported a net profit of Rs 2,677 crore in the year-ago period.

The net interest income – the difference between the revenue a bank earns from its interest-bearing assets and the expenses of its interest-bearing liabilities–  also grew 17 per cent YoY and 2 per cent QoQ to Rs 8,819 crore. Net interest margin (NIM) for Q4FY22 stood at 3.49 per cent.

The lender's GNPA per cent came at 2.82 per cent, declined by 88 bps YoY and 35 bps QoQ, while NNPA per cent stood at 0.73 per cent, declined by 32 bps YoY and 18 bps QoQ.

The bank’s operating profit for the quarter grew 13 per cent YoY and 5 per cent QoQ to Rs 6,466 crore. 

Fee income for the said quarter was up 11 per cent to Rs 3,758 crore. Retail fees grew 14 per cent and
constituted 66 per cent of the bank’s total fee income, the lender stated. 

Further, retail assets (excl. cards) fees grew 41 per cent YoY and 16 per cent QoQ.

Overall, non-interest income (comprising of fee, trading profit and miscellaneous income) for Q4FY22 stood at `4,223 crores, up 19 per cent. 

Further, the Board of Directors has recommended dividend of rupee 1 per equity share of face value of Rs 2 per equity share for the year ended 31st March 2022. This would be subject to approval by the shareholders at the next annual general meeting.

Provisions and contingencies

Specific loan loss provisions for Q4FY22 were Rs 602 crore compared to Rs 790 crores in Q3FY22.

Axis Bank stated that it has not utilized Covid provisions during the quarter. The Bank holds cumulative provisions (standard + additional other than NPA) of Rs 12,428 crore at the end ofMarch quarter. 

It is pertinent to note that this is over and above the NPA provisioning included in our PCR calculations. These cumulative provisions translate to a standard asset coverage of 1.77 per cent as on 31st March, 2022, it added. 

On an aggregated basis, our provision coverage ratio (including specific + standard + additional + Covid provisions) stands at 132 per cent of GNPA as on 31st March, 2022. Credit cost for the quarter ended 31st March, 2022 stood at 0.32%, declining by 116 bps YoY and 12 bps QoQ. 

Commenting on the results, Amitabh Chaudhry, MD&CEO, Axis Bank said, “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. The Citi deal is one of its kind, and should pivot us into a premium franchise in line with our strategic objectives. With smart products, services, partnerships and talent on our side, we look forward to further building on our performance in the new financial year.”

In a move that would consolidate its position amongst the large private lenders, Axis Bank entered into an agreement to acquire Citibank’s consumer businesses - covering loans, credit cards, wealth management and retail banking operations in India, in line with its growth ambitions, the lender stated. 

"A healthy strategic fit, with this acquisition Axis Bank will gain access to the large and affluent customer franchise of Citibank. The deal offers strategic advantages to the Bank such as premiumization of its overall customer portfolio, increased opportunities to cross-sell and various cost synergies," it added.

Shares of Axis Bank on Thursday closed 1.18 per cent higher at Rs 779.95 apiece on BSE.