Axis Bank Q4 PAT rises 54% YoY on lower provisions

29 Apr 2022 , 11:48 AM

Net interest income (NII) increased by 17% to Rs 8,819 crore in Q4 FY22 from Rs 7,555 crore in Q4 FY21. Net interest margin (NIM) for Q4 FY22 stood at 3.49%.

Credit cost for the quarter ended 31 March, 2022 stood at 0.32%, declining by 116 bps YoY and 12 bps QoQ.

Operating profit rose by 13% YoY to Rs 6,466 crore during the quarter.

The banks provisions and contingencies (excluding tax provisions) declined by 54% YoY to Rs 987.23 crore in Q4 March 2022 over Q4 March 2021.

Profit before tax in Q4 FY22 stood at Rs 5,478.75 crore, up by 53% from Rs 3,569.67 crore in Q4 FY21.

The ratio of gross NPAs to gross advances stood at 2.82% as on 31 March 2021 as against 3.17% as on 31 December 2021 and 3.70% as on 31 March 2020.

The ratio of net NPAs to net advances stood at 0.73% as on 31 March 2021 as against 0.91% as on 31 December 2021 and 1.05% as on 31 March 2020.

As on 31 March 2022, the banks provision coverage, as a proportion of gross NPAs stood at 75%, as compared to 72% as at 31 March 2021 and 72% as at 31 December 2021.

The fund based outstanding of standard restructured loans implemented under resolution framework for COVID-19 related stress declined during the quarter and as at 31 March 2022 stood at Rs 4,029 crores that translates to 0.52% of the gross customer assets. The bank carries a provision of approximately 24% on restructured loans, which is in excess of regulatory limits.

The bank reported 98% rise in net profit to Rs 13,025.48 crore on a 9% increase in total income to Rs 82,597.37 crore in FY22 over FY21.

The banks advances grew 15% YoY to Rs 7,07,696 crore and deposits increased by 18% YoY to Rs 8,21,721 crore as on 31 March 2022.

Under Basel III, the capital adequacy ratio (CAR) and CET-1 ratio as on 31 March 2022 were 18.54% and 15.24%, respectively.

The board of directors has recommended dividend of Rs 1 per equity share for the year ended 31 March 2022.

Amitabh Chaudhry, MD & CEO, Axis Bank said, ?We have made steady progress across all dimensions of our business. Considerable work has gone into strengthening our core, building granularity while at the same time ensuring that we are well positioned to grow and leverage the opportunities opening up, hopefully with the pandemic behind us.

The Citi deal is one of its kind, and should pivot us into a premium franchise in line with our strategic objectives.?

Axis Bank is the third-largest private sector bank in India. As on 31 March 2022, the bank had a network of 4,758 domestic branches and extension counters situated in 2,702 centres.

The scrip tumbled 4.37% to currently trade at Rs 745.90 on the BSE.

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