Private lender Axis Bank on Tuesday reported a net profit of Rs 2,677 crore for the March quarter compared to a loss of Rs 1,388 crore in Q4FY20. The lender was back in the black thanks to an 11% year-on-year (y-o-y) development in its net interest revenue (NII) to Rs 7,555 crore.
The lender’s operating profit enhanced 17% y-o-y and 13% quarter-on-quarter (q-o-q) to Rs 6,865 crore. The bottom-line also got a help from lowered provisioning by the lender. Provisions declined 57% y-o-y and 28% q-o-q to Rs 3,295 crore. However, the bank holds provisions of Rs 5,012 crore as on March 31, 2021 against the prospective effect of Covid-19.
Amitabh Chaudhry, MD and CEO of the bank, mentioned, “There will be economic impact of the second wave of Covid-19 but we are hopeful that it will be short-lived. We have transformed ourselves in line with the evolving business scenario to become more agile, more relevant and totally dedicated to the needs of millions of customers,” he added.
The net interest margins (NIM) of the lender declined 3 basis point (bps) sequentially to 3.56%, but showed a development of 1 bps on a y-o-y basis.
The asset high-quality of the lender enhanced in the course of the March quarter. Gross non-performing assets (NPAs) ratio of the lender declined 85 bps to 3.7% from 4.55% in the December 2020 quarter. Similarly, the net NPAs ratio declined 14 bps to 1.19% from .74% in the December quarter. “Gross slippages during the quarter were Rs 5,285 crore, compared to Rs 7,993 crore during Q3FY21 and Rs 3,920 crore in Q4FY20,” Chaudhry mentioned. “Recoveries and upgrades from NPAs during the quarter remained at Rs 3,462 crore, while write-offs were Rs 5,553 crore,” he added.
The provisioning coverage ratio (PCR) enhanced to 72% in the fourth quarter, compared to 69% in the very same quarter last year. “On an aggregated basis, our provision coverage ratio stands at 120% gross NPAs,” the bank mentioned.
Credit charges for the lender more than halved at 1.21% in the course of the March quarter from 2.77% in the course of Q4FY20.
The charge revenue in the course of the March quarter stood at Rs 3,376 crore, up 15% y-o-y and 16% q-o-q. Retail charges grew 16% y-o-y and 17% q-o-q and constituted 64% of the bank’s total charge revenue. The trading earnings and miscellaneous revenue for the quarter stood at Rs 789 crore and Rs 503 crore respectively. Overall, non-interest revenue for Q4FY21 grew 17% y-o-y to Rs 4,668 crore.
Advances grew 9% y-o-y and 7% q-o-q to Rs 6.23 lakh crore. Retail disbursements for the quarter have been at new all-time highs as per lender. Disbursements in the customer segment have been up 45% y-o-y and 44% q-o-q. Similarly, rural disbursements grew 47% on a y-o-y as effectively as sequential basis.
The total deposits grew by 10% y-o-y to Rs 7.07 lakh crore. On a quarterly typical basis (QAB) , savings account deposits grew 17% y-o-y and 6% q-o-q. Retail savings deposits grew 20% y-o-y, present account deposits grew 18% y-o-y and 10% sequentially.
The capital adequacy ratio (Automobile) such as profit for FY21 stood at 19.12% with CET 1 ratio of 15.4% at the finish of March, 2021.
The board has authorised the bank to raise funds up to Rs 35,000 crore. The funds can be raised in Indian or foreign currency by problem of debt instruments such as but not restricted to lengthy-term bonds, non-convertible debentures, perpetual debt instruments, more tier 1 (AT 1) bonds, infrastructure bonds and tier II capital bonds.