Axis Bank Q4 2024 Results: Robust Profits, Dividend, and Fundraising Drive

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Axis Bank, one of India’s leading private lenders, has released its fourth-quarter results for the fiscal year 2024, showcasing robust financial performance, dividend announcements, and plans for a significant fundraising drive. Let’s delve into the highlights of Axis Bank’s Q4 results, shedding light on key financial metrics, provisions, NPAs, dividend declarations, and fundraising endeavors.

Financial Performance: Axis Bank reported a standalone net profit of Rs 7,129.67 crore for the March quarter, marking a notable increase from the previous quarter’s profit of Rs 6,071.10 crore and a significant turnaround from the loss of Rs 5,728.42 crore reported in the same quarter last year. The bank’s Net Interest Income (NII) witnessed a healthy growth of 11 per cent year-on-year (YoY), reaching Rs 13,089 crore. Additionally, the net interest margin (NIM) for the quarter stood at 4.06 per cent, reflecting a positive trajectory.

#GIFTNifty indicates a soft start, down 65 points. Today, we have mixed cues, negative news from #KotakMahindraBank, while #AxisBank delivered strong earnings. @_soniashenoy with all the #morningcues. pic.twitter.com/bf7RGONyCw

— CNBC-TV18 (@CNBCTV18News) April 25, 2024

Other Income: The bank’s fee income surged by 23 per cent YoY to Rs 5,637 crore, with retail fees accounting for 74 per cent of the total fee income. Notably, retail cards and payments fee grew by 39 per cent YoY, reflecting robust growth in consumer banking activities. Furthermore, the trading income and miscellaneous income contributed to the overall non-interest income, which grew by 41 per cent YoY to Rs 6,766 crore.

Provisions and Contingencies: Axis Bank allocated provisions and contingencies amounting to Rs 1,185 crore for the quarter. The specific loan loss provisions stood at Rs 832 crore. Despite the ongoing economic challenges, the bank did not utilize Covid provisions during the quarter, showcasing resilience and prudent risk management. The cumulative provisions at the end of Q4FY24 stood at Rs 12,134 crore, ensuring a provision coverage ratio of 159 per cent of Gross Non-Performing Assets (GNPA).

NPAs and Slippages: The bank’s Gross NPA decreased to 1.43 per cent from 1.58 per cent in the previous quarter, demonstrating a positive trend in asset quality. Net NPA also improved to 0.31 per cent from 0.36 per cent QoQ. Recoveries from written-off accounts amounted to Rs 919 crore, further strengthening the bank’s asset quality. However, reported net slippages adjusted for recoveries from the written-off pool stood at Rs 398 crore, reflecting ongoing challenges in credit quality management.

Dividend Declaration: The Axis Bank board proposed a final dividend of Re 1 per equity share, subject to approval at the ensuing Annual General Meeting (AGM). This dividend, if approved, will be paid within 30 days from the conclusion of the AGM, rewarding shareholders for their continued support and investment in the bank.

Fundraising Drive: In a strategic move to bolster its capital base and support future growth initiatives, Axis Bank approved a fundraising plan of Rs 55,000 crore. This includes raising funds through various debt instruments such as long-term bonds, masala bonds, and sustainable bonds, among others, up to an amount of Rs. 35,000 crore. Additionally, the bank plans to raise up to Rs 20,000 crore via equity shares, depository receipts, or convertible securities, offering flexibility in capital mobilization.

Outlook and Analyst Commentary: Despite the positive financial performance and fundraising initiatives, analysts have highlighted potential equity supply risks that could impact the bank’s share price performance in the near term. However, Axis Bank’s resilient business model, strong asset quality, and proactive risk management strategies position it favorably for sustained growth and value creation in the long run.

In conclusion, Axis Bank’s Q4 2024 results underscore its resilience, profitability, and commitment to enhancing shareholder value. With a robust financial foundation, prudent risk management practices, and strategic growth initiatives, the bank is well-positioned to navigate through dynamic market conditions and capitalize on emerging opportunities in the banking sector.

This comprehensive analysis encapsulates the key highlights and strategic initiatives driving Axis Bank’s performance and future prospects, offering stakeholders valuable insights into the bank’s trajectory and potential for sustainable growth and value creation.