Axis Bank FY21 net profit quadruples to Rs 6,588 crore

Axis Bank on Tuesday reported a 305 per cent year-on-year (YoY) increase in its consolidated net profit for fiscal year 2020-21 at Rs 6,588 crore. The bank's net interest income (NII) grew 16 per cent to Rs 29,239 crore.

Operating profit grew 10 per cent YoY to Rs 25,702 crore in FY21 from Rs 23,438 crore in FY20. Total provisions for FY21 declined 9 per cent to Rs 16,896 crore, while net interest margin (NIM) expanded by 2 basis points to 3.53 per cent.

For January-March quarter, the company reported a net profit of Rs 2,677 crore as against a net loss of 1,388 crore in the year-ago period. On a quarter-on-quarter basis, net profit rose by 140 per cent.

NII grew 11 per cent YoY to Rs 7,555 crore during the quarter under review, while NIM expanded by 1 basis point YoY to 3.56 per cent.

Also read: Maruti Suzuki FY21 net profit dips 25.1% to Rs 4,229.7 crore

Specific loan loss provisions for Q4FY21 were at Rs 7,038 crore as compared to Rs 4,204 crore in Q4FY20. During the quarter, the bank made additional provision aggregating Rs 803 crore on account change in non-performing asset (NPA) provision rates on loans to commercial banking segment.

"On an aggregated basis, our provision coverage ratio (including specific + standard + additional + COVID provisions) stands at 120 per cent of gross NPA as on March 31, 2021," Axis Bank said.

The bank's balance sheet grew 9 per cent YoY and stood at Rs 9,96,118 crore as on March 31, 2021. On asset quality front, Axis Bank's gross NPA and net NPA stood at 3.70 per cent and 1.05 per cent, respectively, on March 31, 2021 as against 4.55 per cent and 1.19 per cent as on December 31, 2020.

"As an organisation, we have traversed a phenomenal distance last year. We have transformed ourselves in line with the evolving business scenario to become more agile, more relevant and totally dedicated to the needs of millions of customers. From strengthening our digital capabilities, providing flexible employment opportunities to playing our part in the community during these difficult times, Axis has come a long way and we hope to continue with the good work," Axis Bank MD and CEO Amitabh Chaudhry said.

Shares of Axis Bank closed 0.16 per cent lower at Rs 699.30 on the BSE on Tuesday.

Also read: SII can supply Covishield only after May 20: Maharashtra Health Minister Rajesh Tope