Axis Bank Q4 results: Key highlights from the earnings report

The gross non-performing asset (NPA) stood at 1.43 percent, down from 2.02 percent from the year-ago period. Net NPAs were at 0.31 percent compared to 0.39 percent.

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Private sector lender Axis Bank reported a net profit of Rs 7,130 crore for fiscal fourth quarter as against a loss of Rs 5,762 crore in the year-ago period, after it bought Citi Bank's India consumer division.

The private sector lender's net interest income (NII), the difference between the interest income it earned from lending activities and the interest paid to depositors, came in at Rs 13,089 crore, up 11.47 percent from the previous year's Rs 11,742 crore.

Here are the key highlights:

Robust profit

Axis Bank's net profit for the full financial year 2023-24 stood at Rs 24,861 crore versus Rs 9,580 crore in FY23. For the January-March FY24 quarter, it reported a net profit of Rs 7,130 crore for the fiscal fourth quarter as against a loss of Rs 5,762 crore in the year-ago period after it bought Citi Bank's India consumer division.

ALSO READ: Axis Bank issued 1.24 million new credit cards in Jan-March quarter

The private sector lender's net interest income (NII), the difference between the interest income it earned from lending activities and the interest paid to depositors, came in at Rs 13,089 crore, up 11.47 percent from the previous year's Rs 11,742 crore.

Healthy asset quality

The gross non-performing asset (NPA) stood at 1.43 percent, down from 2.02 percent from the year-ago period. Net NPAs were at 0.31 percent compared to 0.39 percent.

Provision and contingencies for Q4FY24 stood at Rs 1,185 crore and specific loan loss provisions for Q4FY24 stood at Rs 832 crore. The bank holds cumulative provisions (standard + additional other than NPA) of Rs 12,134 crore at the end of FY24.

The bank said it has written off loans worth Rs 2,082 crore in the January-March quarter.

Fund raising

Alongside healthy earnings, the bank's board approved a fundraise via issue of debt instruments worth Rs 35,000 crore, and another Rs 20,000 crore via equity.

Strong overall growth

Fee income for the quarter rose 23 percent YoY to Rs 5,637 crore. Retail fees were up 33 percent YoY and constituted 74 percent of the bank’s total fee income. "Retail cards and payment fees grew 39 percent YoY. Retail Assets (excluding cards and payments) fee grew 20 percent YoY. Fees from Third Party Products grew 59 percent YoY, the bank said.

The Corporate and Commercial banking fees together grew 2 percent YoY to Rs 1,478 crore. Trading income gain for the quarter stood at Rs 1,021 crore, while miscellaneous income came in at Rs 107 crore.

"Overall, non-interest income (comprising fee, trading and miscellaneous income) for Q4FY24 grew 41 percent YOY and 22 percent QOQ to Rs 6,766 crore," Axis Bank said.