Moneycontrol PRO
Upcoming Event:Attend Algo Convention Live, 2 Days & 12+ Speakers at best offer Rs.999/-, exclusive for Moneycontrol Pro subscribers. Register now!

Axis Bank suffers loss, but asset quality better; takeaways from Q4FY20 scorecard

The bank said its operating profit for Q4FY20 grew by 17 percent YoY to Rs 5,851 crore, while net interest income rose 19 percent YoY to Rs 6,808 crore.

April 29, 2020 / 05:37 PM IST

Axis Bank on April 28 reported a standalone loss of Rs 1,387.78 crore for the fourth quarter of FY20 against a profit of Rs 2,302.99 crore in the same period last year.

The numbers missed Street expectations. Analysts polled by CNBC-TV18 had estimated Rs 1,580.1 crore profit.

“The crisis we are facing as a nation is a long drawn one and it will need courage, grit and a fighting spirit to combat it. We believe in learning from all adversaries. For example, the lock-down has taught us how Work From Home (WFH) can be more productive and convenient. We are now exploring if WFH can become a part of our work culture going ahead,” MD&CEO Amitabh Chaudhry said.

Here are takeaways from Axis Bank's fourth-quarter scorecard:

Operating performance


The private lender said its operating profit for Q4FY20 grew by 17 percent YoY to Rs 5,851 crore while net interest income (NII) rose 19 percent YoY to Rs 6,808 crore. The net interest margin (NIM) stood at 3.55 percent.

Operating profit for the entire year grew 23 percent YoY to Rs 23,438 crore while NII in FY20 grew by 16 percent YoY to Rs 25,206 crore. NIM for FY20 was 3.51 percent.

Net profit for FY20 stood at Rs 1,627 crore. Adjusted for one-offs, net profit for FY20 would have been Rs 5,182 crore, up 11 percent YoY, Axis Bank said.

Decent deposit and loan growth

Total deposits grew 19 percent YoY on a quarterly average basis (QAB), said Axis Bank. Savings account deposits grew 13 percent YoY and current account deposits grew by 11 percent YoY.

Loan book grew 15 percent YoY, with retail loans up 24 percent and corporate loans up 11 percent, it said.

Retail term deposits (RTD) were up 33 percent YoY and CASA ratio was 39 percent on QAB basis.

The bank said it added 478 branches to its domestic network in FY20.

Asset quality improves QoQ

As on March 31, 2020, the bank’s gross non-performing assets (NPA) and net NPA levels were 4.86 percent and 1.56 percent, respectively, as against 5 percent and 2.09 percent, respectively, as on December 31, 2019, the bank said.

As per the BSE release, during the quarter, the bank has made provisions of Rs 7,730 crore, including Rs 3,000 crore related to COVID-19, taking the overall additional provisions to Rs 5,983 crore.

The overall additional provisions held by the bank towards various contingencies together with the standard asset provisions, translate to a standard asset coverage of 1.3 percent as of March 31, 2020, the bank said.


Axis Bank numbers

Digital segment grows

"Axis Bank continues to remain amongst the top players in mobile banking space-- both in terms of transaction value and volumes, as per the latest RBI data available till January 2020," the bank said.

The bank claimed its mobile banking transaction volumes in Q4 grew by 79 percent YoY, while the mobile spends reported a growth of 44 percent YoY.

The share of digital transactions in the overall transaction mix remained strong at 84 percent at the end of March 2020.

The contribution of digital channels towards the business growth continued to rise steadily, as 66 percent of fixed deposits, 53 percent of new mutual fund SIPs sourced and 48 percent of personal loan disbursements in Q4 were through digital channels, the bank said.

Download your money calendar for 2022-23 here and keep your dates with your moneybox, investments, taxes

Moneycontrol News
first published: Apr 28, 2020 05:59 pm
ISO 27001 - BSI Assurance Mark