25-Apr-2024
2 mins read
Axis Bank reported good performance in its fourth-quarter results for FY-24, with a net profit of Rs 7,130 crore compared to a loss of Rs 5,728.4 crore in the corresponding quarter period of last year. Axis bank's operating profit is increased by 15% year-on-year to Rs 10,536 crore, while net interest income is rose by 11.5% to Rs 13,089 crore. These figures show good and steady growth of the company’s financials.
Dividend Declaration
In a move signaling confidence in its financial position, Axis Bank's board recommended a dividend of Rs 1 per equity share for the fiscal year 2023-24. This recommendation, subject to shareholder approval at the upcoming annual general meeting, underscores the bank's commitment to shareholder value and returns.
Also Read | Billwin Industries Limited Rights Issue: Core Details About the Rights Issue
Asset Quality Improvement
Axis Bank demonstrated improvements in asset quality, with reduced gross and net non-performing asset (NPA) levels as of March 31, 2024. Gross NPAs decreased to 1.43%, and net NPAs reduced to 0.31%. Furthermore, recoveries from written-off accounts amounted to Rs 919 crore, contributing to the strengthening of the bank's asset quality metrics.
Provisions and Contingencies
The bank maintained a healthy provision coverage ratio, reported at 79% of gross NPAs. Provisions and contingencies for Quarter 4 of FY-24 totaled at Rs 1,185 crores, with specific loan loss provisions amounting to Rs 832 crores. The bank's cumulative provisions, including standard and additional other than NPA, stood at Rs 12,134 crore by the end of Quarter 4 of FY-24, reflecting careful risk management approach.
Other Income Growth
Axis Bank witnessed strong growth in other income, particularly from fee-based activities. Retail fees grew by 33% year-on-year and constituted 74% of the bank's total fee income. Furthermore, fee income from third-party products surged by 59% year-on-year, highlighting the bank's success in diversifying its income streams and leveraging its retail and corporate banking expertise.
Additional Highlights
Axis Bank's balance sheet expanded by 12% year-on-year, reaching Rs 14,77,209 crore as of March 31, 2024. The bank's total deposits grew by 13% year-on-year, with notable growth in retail term deposits. Advances also saw a healthy growth of 14% year-on-year, reaching Rs 9,65,068 crore, reflecting continued momentum in lending activities and customer engagement strategies.
Also Read | Kotak Mahindra Bank Share Price Fell 10% After RBI Cease Onboarding New Customers