Axis Bank bounces back with Rs 7,130 cr profit 🚀💰

Axis Bank Announces Stellar Financial Results for Q4 FY24

Axis Bank recently reported an impressive standalone net profit of Rs 7,130 crore for the quarter ending March 31, 2024. This marks a significant turnaround from the loss of Rs 5,728.42 crore reported in the same quarter last fiscal year. The bank also witnessed a 22% increase in net interest income, which stood at Rs 29,224.54 crore compared to Rs 23,969.76 crore in the previous year.

Key Highlights of Axis Bank’s Performance

Net Profit for the full year FY24 was Rs 24,861.43 crore, a substantial increase from Rs 9,579.68 crore in FY23
Net Interest Income (NII) for FY24 stood at Rs 1,09,368.63 crore, up from Rs 85,163.77 crore in FY23
Plans to raise funds by issuing debt instruments and equity shares/ depository receipts
FY24 Profit After Tax (PAT) witnessed a 160% increase year-on-year
Quarterly Net Interest Margin (NIM) reported at 4.07%, up by 5 basis points compared to the previous year

Loan Growth and Deposits

Here are some key insights into Axis Bank’s loan growth and deposits:

Loan Growth

The lender experienced robust loan growth across all business segments

Advances surged by 15% year-on-year and 4% quarter-on-quarter
Rural loans saw a 30% year-on-year growth and 15% quarter-on-quarter growth
Small business banking loans increased by 33% year-on-year and 7% quarter-on-quarter
The mid-corporate (MC) book expanded by 22% year-on-year

Deposits

The bank’s balance sheet grew by 12% year-on-year, reaching Rs 14,77,209 crore as of March 31, 2024
Total deposits recorded a 13% year-on-year growth and a 6% quarter-on-quarter growth
The share of CASA deposits in total deposits stood at 43%

Payments and Digital Transactions

Issued 12.4 lakh credit cards in Q4 FY24
Digital transactions accounted for 96% of total financial transactions by individual customers in Q4 FY24
79% of individual retail term deposits were opened digitally in FY24
Reported a 39% year-on-year growth in total UPI transaction value in Q4 FY24
Experienced a 52% year-on-year growth in mobile banking transaction volumes in Q4 FY24

Asset Quality and NPAs

As of March 31, 2024, gross NPA and net NPA levels stood at 1.43% and 0.31% respectively
Reported recoveries from written off accounts for the quarter amounted to Rs 919 crore
Gross slippages during the quarter were Rs 3,471 crore, with recoveries and upgrades from NPAs at Rs 2,155 crore
The bank wrote off NPAs aggregating Rs 2,082 crore in the quarter

Hot Take: Axis Bank’s Resilient Performance Signals Recovery in Banking Sector

Axis Bank’s impressive financial results for Q4 FY24 reflect a strong recovery trajectory and robust business growth. The significant increase in net profit, coupled with resilient loan growth and asset quality, positions the bank favorably in the competitive banking landscape. With a strategic focus on digital transformation and enhancing customer experience, Axis Bank is well-poised to leverage emerging opportunities and drive sustainable growth in the banking sector.