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Axis Bank’s standalone net profit zoomed 53.8 per cent to Rs 4,117.77 crore in the fourth quarter of 2021-22 on the back of robust growth in net interest income and lower provisions.
The standalone net profit stood at Rs 2,677.06 crore in the fourth quarter of 2020-21.
Standalone net profit for the full fiscal 2021-22 surged by 98 per centto Rs 13,025.48 crore from Rs 6,588.5 crore in 2020-21.
For the quarter ended March 31, 2022, net interest income grew 17 per cent year-on-year to Rs 8,819 crore from Rs 7,555 crore a year ago.
The net interest margin for the fourth quarter of the fiscal stood at 3.49 per cent, lower than 3.56 per cent a year ago.
Puneet Sharma, CFO, Axis Bank, noted that there are a few levers which will help NIM, including the quality and composition of liabilities and asset mix, which now trend towards retail. “NIM is a journey for us – over eight to 10 quarters,” he said.
Other income (comprising of fee, trading profit and miscellaneous income) for the January to March 2022 quarter grew 19 per cent year-on-year to Rs 4,223 crore versus Rs 3,541 crore a year ago.
Provisions declined by 54.4 per cent to Rs 987.23 crore in the fourth quarter of the last fiscal, from Rs 2,167.34 crore a year ago.
Specific loan loss provisions for the fourth quarter were at Rs 602 crore compared to Rs 790 crore in the third quarter of 2021-22. The bank has not utilised Covid provisions during the quarter.
At the end of the fourth quarter last fiscal, the bank held cumulative provisions (standard and additional other than NPA) of Rs 12,428 crore.
Asset quality improves
Gross non-performing assets were lower at Rs 21,822.32 crore or 2.82 per cent of gross advances as on March 31, 2022. It stood at 3.17 per cent as on December 31, 2021 and 3.7 per cent as on March 31, 2021.
Similarly, net NPAs were at Rs 5,512.16 crore as on March 31, 2022, amounting to 0.73 per cent of net advances. It was 0.91 per cent as on December 31, 2021 and 1.05 per cent as on March 31, 2021.
Amitabh Chaudhry, Managing Director and CEO, Axis Bank, said legacy asset quality issues are firmly in the past.
“We have strong momentum going into fiscal year 2022-23. We remain positive and optimistic about our future,” he said.
A one of its kind deal
The Citi deal is one of its kind, and should pivot the bank into a premium franchise in line with its strategic objectives, he further said.
Axis Bank had on March 30 this year entered into an agreement to acquire Citibank’s consumer businesses - covering loans, credit cards, wealth management and retail banking operations in India.
The bank issued nearly 11 lakh credit cards in the fourth quarter of the fiscal, which is the highest ever for any quarter, taking the total card issuances in 2021-22 to 27 lakh.
Its advances grew 15 per cent year-on-year to Rs 7,07,696 crore as on March 31, 2022, and deposits increased by 17.7 per cent to Rs 8,21,721 crore in the same period.
The bank’s board has approved an increase in the limit of the bank up to Rs 2,50,000 crore for borrowings.
It has also authorised the bank to borrow or raise funds in Indian or foreign currency by issue of debt Instruments for up to Rs 35,000 crore.
The board has recommended final dividend of Rs 1 per equity share of face value of Rs 2 each for the financial year 2021-22, subject to approval of the members at the ensuing Annual General Meeting.
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