Key Highlights of Axis Bank’s Q4 Results: Profit of Rs. 7,130 Crores, Announcement to Raise Funds of Rs. 55,000 Crores

A final dividend of one rupee per equity share was recommended, subject to the agreement of the bank’s members, for the approaching 30th Annual General Meeting.

Axis Bank’s Q4 Income: For the quarter that ended in March, the bank recorded a standalone net profit of Rs. 7,129.67 crores. In comparison, the previous quarter’s results showed a profit of Rs. 6,071.10 crores (a 17% QoQ gain) and a loss of Rs. 5,728.42 crores from the same period the previous year.

Net interest income (NII) for the bank rose to Rs. 13,089 crores during the quarter, representing an annual growth of 11%. On a quarterly basis, the net interest margin (NIM) grew by 4.06% during the quarter.

Axis Bank’s Other Income: At Rs. 5,637 crores, the fee income for the quarter climbed by 23% year over year. A rise of 33% each year was observed in retail fees, which accounted for 74% of the bank’s overall fee income. The bank declared, “Retail card and payment fees increased by 39% on an annual basis.

The fees for retail assets, which do not include cards or payments, grew by 20% annually. The annual rise in fees from third-party items was 59%.”

The total increase in Corporate and Commercial Banking Fees was 2%, amounting to Rs. 1,478 crores. For the quarter, miscellaneous income totaled Rs. 107 crores, while commercial income stayed at Rs. 1,021 crores.

According to the bank, “Overall, non-interest income (including fees, business, and miscellaneous income) for Q4FY24 increased by 41% YOY and 22% QOQ to Rs. 6,766 crores.”

Provisions and Contingencies: A total of Rs. 1,185 crores was allocated for provisions and contingencies in Q4FY24. For Q4FY24, specific loan loss provisions amounted to Rs. 832 crores. During the quarter, the bank shifted its COVID provisions to other provisions since it was not using them.

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The bank’s provision coverage ratio as of March 31, 2024, at the conclusion of Q4FY24, was 159% (specific + standard and other provisions included). For the quarter that concluded on March 31, 2024, the credit cost was 0.32%.

Net Profit and Dividend of Axis Bank: The board of the bank recommended a final dividend of Rs. 1 per equity share, subject to approval by the bank’s members at the approaching 30th Annual General Meeting. The dividend will be handed out within 30 days after the AGM date if it is authorised.

Obtaining Funds of Rs. 55,000 Crores: The board of Axis Bank authorised obtaining funds through instruments in both Indian and international currencies, such as mandatory convertible debentures, long-term bonds, masala bonds, perpetual/AT1 bonds (including green bonds), and so on. Up to Rs. 35,000 crores may be issued as convertible debentures, perpetual bonds, AT1 bonds, Basel III compliant Tier II capital bonds, or any other instruments.

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Furthermore, Axis Bank announced that it will raise up to Rs. 20,000 crores through the issuance of additional securities or instruments that represent equity shares, depository receipts, convertible securities linked to equity shares, and/or any other securities or instruments that the Board deems appropriate.

Since the stock has recently seen large equity supply from block agreements (December ’23 and April ’24), Nomura India had said earlier this week that the equity supply overhang could be a near-term risk for stock price performance.