Axis Bank Q4FY22 result: PAT up 54 pc YOY to Rs 4,118 cr

The bank's Net Interest Income (NII) rose 17 percent year-on-year to Rs 8,819 crores and 2 percent compared to the previous quarter, Net Interest Margin (NIM) stood at 3.49 percent, fee income up 11 percent compared to the same quarter last fiscal year and 12 percent against quarter three.

On a quarterly average balance (QAB) basis, total deposits grew 19 percent year-on-year and 4 percent quarter-on-quarter.

Savings accounts grew 19 percent year-on-year and 2 percent quarter-on-quarter while current accounts grew 19 percent year-on-year and 3 percent quarter-on-quarter.

The bank’s advances grew 15 percent year-on-year and 6 percent ​quarter-on-quarter to Rs 7,07,696 crores as on 31st March 2022. The bank’s loan to deposit ratio stood at 86 percent.

Retail loans grew 21 percent year-on-year and 9 percent ​quarter-on-quarter to Rs 3,99,891 crores and accounted for 57 percent of the net advances of the Bank.

The share of secured retail loans was approximately 80 percent, with home loans comprising 36 percent of the retail book.

Home loans, Small business Banking and Rural loans portfolio grew 18 percent year-on-year, 60 percent year-on-year, and 29 percent year-on-year respectively.

Unsecured personal loans and credit card advances grew 15 percent year-on-year and 19 percent year-on-year respectively.

SME loan book grew 26 percent year-on-year and 13 percent ​quarter-on-quarter to Rs 77,067 crores. 96 percent of the SME book is secured with predominantly working capital financing, and is well diversified across geographies and sectors.

Corporate loan book grew 4 percent year-on-year and was flat ​quarter-on-quarter to Rs 2,30,738 crores. 88 percent of corporate book is now rated A- and above with 92 percent of incremental sanctions in FY22 being to corporates rated A- and above

Gross non-performing assets (GNPA) percent was at 2.82 percent declined by 88 bps year-on-year and 35 bps quarter-on-quarter, Net non-performing assets (NNPA) percent was at 0.73 percent, declining by 32 bps year-on-year and 18 bps quarter-on-quarter.

Overall capital adequacy ratio (CAR) stood at 18.54 percent with CET 1 ratio of 15.24 percent

Axis Bank said its Q4 FY22 consolidated ROE (annualized) at 16.67 percent, subsidiaries contribute 80 bps to consolidated ROE

Approximately 1.1 million credit cards were issued in Q4FY22, highest ever for any quarter taking total card issuances in FY22 to 2.7 million

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."

In a move that would consolidate its position amongst the large private lenders, Axis Bank entered into an agreement to acquire Citibank’s consumer businesses - covering loans, credit cards, wealth management and retail banking operations in India, in line with its growth ambitions.

"A healthy strategic fit, with this acquisition Axis Bank will gain access to the large and affluent customer franchise of Citibank. The deal offers strategic advantages to the Bank such as premiumization of its overall customer portfolio, increased opportunities to cross-sell and various cost synergies," " the bank said.

"The Citi deal is one of its kind, and should pivot us into a premium franchise in line with our 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,” added Chaudhry.