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 Bankโs 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 Bankโs 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 bankโs 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 Bankโs Resilient Performance Signals Recovery in Banking Sector
Axis Bankโs 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.
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