Axis Bank share price soars post Q4 results

The share price of Axis Bank rose nearly 2 per cent post Q4 numbers. The bank on Tuesday reported a net profit of Rs 2677 crore for the quarter ended March 2021, as compared to a loss of Rs 1,388 crores in the same quarter a year ago. The increase in net profit was attributed to a sharp decline in bad loan provisions.  

The Net Interest Income (NII) grew 11 per cent to Rs 7,555 crores in the March quarter compared to Rs 6,808 crores in Q4FY20. Net interest margin (NIM) for Q4FY21 was 3.56 per cent, as against 3.55 per cent for Q4FY20.

The bank informed that the specific loan loss provisions for Q4FY21 were Rs 7,038 crores (including reclassification of NPA provision of Rs 4,266 crores on account of Supreme Court judgment shown as other provision in the prior quarter), compared to Rs 4,204 crores in Q4FY20. During the quarter, the Bank has made additional provision aggregating Rs. 803 crores on account change in NPA provision rates on loans to Commercial Banking segment.

Gross non-performing assets (NPA) fell to 3.70 per cent in Q4FY21, as against 4.55 per cent as on 31st December 2020. Net NPA also fell to 1.05% from 1.56%, down 14 basis points sequentially.

The bank stated that the gross slippages during the quarter were Rs 5,285 crores, compared to Rs 7,993 crores during Q3FY21 and Rs 3,920 crores in Q4FY20. Slippages from the loan book were at Rs 5,038 crores and that from investment exposures stood at Rs 247 crores. Recoveries and upgrades from NPAs during the quarter were Rs 3,462 crores while write-offs were Rs 5,553 crores.

"Consequently, there were net slippages in NPAs (before write-offs) for the quarter of Rs 1,822 crores as compared to Rs 5,831 crores in Q3FY21 and net slippages of Rs 1,431 crores in Q4FY20," it added.

The bank further added that the fee income for Q4FY21 stood at Rs 3,376 crores, up 15 per cent YoY and 16 per cent QoQ. Retail fees grew 16 per cent YoY and 17 per cent QoQ; and constituted 64 per cent of the Bank's total fee income. The corporate & commercial banking fee grew 14 per cent YoY and 15 per cent QoQ.

For the financial year 2020-21, Net interest income grew 16 per cent to Rs 29,239 crores as compared to Rs 25,206 crores in FY20. Net profit grew 305 per cent to Rs 6,588 crores from Rs 1,627 crores in FY20.

On a year-to-date (YTD) basis, the stock has rallied around 13 per cent, outshining the sectoral index Nifty Bank that has gained around 7 per cent.

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