Today Axis Bank’s Q4 results out and the market gave a VE+ reaction and the stock price jumped up to 6%. If you want to invest in axis bank just add to it your watchlist because this stock can give a strong breakout very soon.
In the fiscal year 2023–24, Axis Bank reported a net profit of ₹7,130 crore for the January–March quarter (Q4FY24) on Wednesday, April 24. In the same time the previous year, the bank recorded a loss of ₹5,728.4 crore. After adjusting for inflation, the net interest income (NII) of private sector lenders increased to ₹13,089 crore from ₹11,742 crore in the previous year, representing a YoY increase of 11.5%.
Axis Bank’s Q4 Results More Details
For the quarter, Axis Bank’s operational profit increased by 15% year over year to ₹10,536 crore. The March quarter’s core operating profit was ₹9,515 crore, a 5% YoY increase in earnings. Comparing Q4FY24 to Q4FY23, the net profit was ₹7,130 crore, up 17% quarter-over-quarter (QoQ) from a net loss of ₹5,728 crore. Net interest margin (NIM) for the bank increased by five basis points on a quarterly basis, to 4.06 percent in Q4FY24.
For Q4FY24, provision and contingencies totaled Rs 1,185 crore. For Q4FY24, specific loan loss provisions were Rs 832 crore. The Covid provisions have been reclassified to other provisions as the bank has not used them during the quarter. At the end of Q4FY24, the bank had cumulative provisions of Rs 12,134 crore. “As of March 31, 2024, our provision coverage ratio, which includes both special and standard provisions, is 159% of GNPA overall. Credit cost was 0.32 percent for the quarter that ended on March 31, 2024, according to the report.
Dividend
Subject to the agreement of the Bank’s members at the upcoming 30th Annual General Meeting, the bank board suggested a final dividend of Re 1 per equity share. Once the AGM has concluded, the dividend, if authorized, will be paid out within 30 days.
Conclusion
The gross non-performing assets (NPA) and net non-performing assets (NPA) of the bank as of March 31, 2024, were 1.53% and 0.31%, respectively, compared to 1.58% and 0.36%, respectively, as of December 31, 2023. For the quarter, there were Rs 919 crore in recoveries from written-off accounts.
There were Rs 398 crore in reported net slippages for the quarter that were adjusted for recovery from the written-off pool. The quarter’s gross slippages came to Rs 3,471 crore, down from Rs 3,715 crore in Q3FY24 and Rs 3,375 crore in Q4FY23. Upgrades and recuperations.
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