Business strategy

Net Profit Jumps 54% YoY To Rs 4,118 Crore, NII Up 17%; Dividend Declared

Private sector lender Axis Bank on Thursday reported a net profit of Rs 4,118 crore for the March 2022 quarter, a jump of 54 per cent as compared with Rs 2,677 crore in the year-ago period. Its net interest income (NII) grew 17 per cent year-on-year to Rs 8,819 crore.

The lender’s net interest margin (NIM) for January-March 2022 stood at 3.49 per cent. Its non-interest income (comprising of fee, trading profit and miscellaneous income) for the March 2022 quarter stood at Rs 4,223 crore, up 19 per cent year-on-year, Axis Bank said in a BSE filing.

The lender’s fee income for the March 2022 quarter grew 11 per cent y-o-y to Rs 3,758 crore. Retail fees grew 14 per cent year-on-year and constituted 66 per cent of the bank’s total fee income.

Its operating profit during the March 2022 quarter grew 13 per cent year-on-year to Rs 6,466 crore.

Its specific loan loss provisions for the quarter were Rs 602 crore, compared with Rs 790 crore in the December 2021 quarter. “The bank has not utilised COVID-19 provisions during the quarter. The bank holds cumulative provisions (standard and additional other than NPA) of Rs 12,428 crore at the end of Q4FY22,” it said.

The bank has declared a dividend of Rs 1 per equity share for 2021-22. “The board of directors has recommended a dividend of Rs 1 per equity share of a face value of Rs 2 per equity share for the year ended March 31, 2022. This would be subject to approval by the shareholders at the next annual general meeting.”

On the asset quality, the bank’s reported gross non-performing assets (GNPA) and net NPA levels as on March 31, 2022, stood at 2.82 per cent and 0.73 per cent, respectively, as compared with 3.17 per cent and 0.91 per cent as on December 31, 2021.

Gross slippages during the quarter were Rs 3,981 crore, compared with Rs 4,147 crore in the December 2021 quarter and Rs 5,285 crore in the March 2021 quarter. “Recoveries and upgrades from NPAs during the quarter were Rs 3,763 crore,” Axis Bank said in a statement.

It added that the net slippages in NPAs (before write-offs) for the quarter of Rs 218 crores as compared to Rs 860 crore in Q3FY22 and Rs 1,822 crore in Q4FY21. “The net slippages in retail were Rs 193 crores, commercial banking was Rs 85 crore and wholesale banking were negative Rs 60 crore. In addition to recoveries and upgrades previously mentioned, recoveries from written-off accounts were Rs 719 crore.”

Axis Bank MD & CEO Amitabh Chaudhry 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.”

He added that the Citi deal is one of its kind, and should pivot the bank into a premium franchise in line with its strategic objectives. “With smart products, services, partnerships and talent on our side, we look forward to further building on our performance in the new financial year.”

Its total deposits grew by 19 per cent year-on-year on a quarterly average balance (QAB) basis and 18 per cent y-o-y on a period-end basis. On the QAB basis, savings account deposits grew 19 per cent y-o-y and 2 per cent q-o-q, current account deposits grew 19 per cent y-o-y and 3 per cent q-o-q.

“The bank’s advances grew 15 per cent year-on-year and 6 per cent quarter-on-quarter to Rs 7,07,696 crore as on March 31, 2022. The bank’s loan to deposit ratio stood at 86 per cent. Retail loans grew 21 per cent y-o-y and 9 per cent q-o-q to Rs 3,99,891 crore and accounted for 57 per cent of the net advances of the bank,” Axis Bank said.

For the full financial year, the bank’s net profit jumped 98 per cent to Rs 13,025 crore in 2021-22 as compared with Rs 6,588 crore in FY21. Its net interest income for FY22 grew 13 per cent y-o-y to Rs 33,132 crore from Rs 29,239 crore. Fee income grew 22 per cent y-o-y to Rs 13,001 crore.

Operating profit grew 7 per cent to Rs 24,742 crore in FY22, from Rs 23,128 crore in FY21. Total provisions for FY22 stood at Rs 7,359 crore, down 49 per cent over the same period last fiscal.

Read all the Latest News , Breaking News and IPL 2022 Live Updates here.

Source link

Leave a Reply

Your email address will not be published.