Axis Bank Q4FY22 and Year Ended result : Loans up 21% YoY, GNPA declined 88 bps YoY; PAT grew 49% to ₹4,434 Cr YoY

Total AUMs over 2.6 trillion up 22% YOY with Burgundy Private AUMs at86,959 crores up 74% YOY

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Axis Bank is India’s third largest private sector bank, with a vast retail footprint of over 11000+ ATMs and 4000+ branches across the country. The Bank offers the entire spectrum of financial services to customer segments covering Large and Mid-Corporates, MSME, Agriculture and Retail Businesses.

The Overseas operations are spread over eight international offices with branches at Singapore, Dubai (at DIFC) and Gift City-IBU; representative offices at Dhaka, Dubai, Abu Dhabi, Sharjah and an Overseas subsidiary at London, UK. The Bank has posted its Q4FY22 and year ended financial results today, the details are as below :

(I) Audited Consolidated Financial Results for Quarter Ended (YoY comparison):

The company has reported, a consolidated Total Income of ₹23,000.69 crore in the quarter ended on March 31, 2022 as against ₹19,850.11 crore in the corresponding quarter ended last year on Mar 31, 2021, increased by 15.87%.

The company has posted a consolidated Net Profit of ₹4,434.00 crore in the quarter ended on March 31, 2022 as against ₹2,960.40 crore in the corresponding quarter ended in last year on Mar 31, 2021. The PAT surges up by 49.78%.

The status of the EPS of the company stood at ₹14.36 as on March 31, 2022 compared to the previous quarter ended on Mar 31, 2021 which was ₹9.58, up by 49.90%.

₹*Mar 31, 2022 (Q4FY22)Dec 31, 21 (Q3FY22)Mar 31, 21 (Q4)
Total Income23,000.6922091.1919,850.11
Total Expenses16113.8815426.4513696.56
PBT /(Loss)5902.695301.393957.20
Total Tax /(credit)1468.691328.32996.80
PAT /(Loss) [to the owners]4,434.003973.072,960.40
*figures are in Crores

(II) Audited Consolidated Financial Result details for the Year Ended :

The company has reported, a consolidated Total Income of ₹86,114.19 crore in the financial year ended on March 31, 2022 as against ₹77,974.28 crore for the financial year ended on Mar 31, 2021, increased by 10.44%.

The company has posted a consolidated Net Profit of ₹14,164.35 crore in the financial year ended on March 31, 2022 as against ₹7,252.39 crore for the financial year ended on March 31, 2021. The PAT surges up by 95.31%.

The status of the EPS of the company stood at ₹45.91 as on March 31, 2022 compared to the previous year ended on March 31, 2021 which was ₹24.13, updown by %.

₹*Mar 31, 2022 (FY22)Mar 31, 2021 (FY21)
Total Income86,114.1977,974.28
Total Expenses39746.8953802.26
PBT /(Loss)18929.469750.08
Total Tax /(credit)4765.112497.69
PAT /(Loss)14,164.357,252.39
*figures are in Crores

(III) Key Highlights about the Performance :

  • Net Interest Income up 17% YOY & 2% QOQ, NIM stood at 3.49%, Fee income up 11% YOY & 12% QOQ
  • On QAB basis: Total deposits grew 19% YOY & 4% QOQ; SA grew 19% YOY & 2% QOQ, CA grew 19% YOY & 3% QOQ
  • Loans up 15% YOY and 6% QOQ, Retail up 21% YOY & 9% QOQ, SME up 26% YOY & 13% QOQ.
  • GNPA% at 2.82% declined by 88 bps YOY and 35 bps QOQ, NNPA% at 0.73% declined by 32 bps YOY and 18 bps QOQ,
  • Overall capital adequacy ratio (CAR) stood at 18.54% with CET 1 ratio of 15.24%
  • Q4 FY22 consolidated ROE (annualized) at 16.67%, subsidiaries contribute 80 bps to consolidated ROE
  • ~1.1 million credit cards issued in Q4FY22, highest ever for any quarter taking total card issuances in FY22 to 2.7 million
  • 2nd largest player in Merchant Acquiring with market share of 16%, incremental share of 31% in 11MFY22
  • Total AUMs over 2.6 trillion up 22% YOY with Burgundy Private AUMs at86,959 crores up 74% YOY
  • Burgundy Private now covers over 3,490 families up from 1,666 families in last one year
  • Net slippages declined 75% QOQ, Net slippage ratio (annualized) at 0.13%, improved 42 bps QOQ
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(IV) Asset Quality :

As on 31st March, 2022 the Bank’s reported Gross NPA and Net NPA levels were 2.82% and 0.73% respectively as against 3.17% and 0.91% as on 31st December 2021.
Gross slippages during the quarter were ₹3,981 crores, compared to₹4,147 crores in Q3FY22 and ₹5,285 crores in Q4FY21 (as per IRAC norms). Recoveries and upgrades from NPAs during the quarter were₹3,763 crores Consequently, the net slippages in NPAs (before write-offs) for the quarter of ₹218 crores as compared to₹860 crores in Q3FY22 and ₹1,822 crores in Q4FY21.

The net slippages in retail were₹193 crores, commercial banking was ₹85 crores and wholesale banking were negative ₹60 crores. In addition to recoveries and upgrades previously mentioned, recoveries from written off accounts were ₹719 crores. Hence on aggregate, the slippages were lower than recoveries, upgrades and collections from written off accounts. The Bank in the quarter wrote off NPAs aggregating₹1,696 crores.
As on 31st March 2022, the Bank’s provision coverage, as a proportion of Gross NPAs stood at 75%, as compared to 72% as at 31st March 2021 and 72% as at 31st December 2021.

The fund based outstanding of standard restructured loans implemented under resolution framework for COVID-19 related stress (Covid 1.0 and Covid 2.0) declined during the quarter and as at 31st March 2022 stood at₹4,029 crores that translates to 0.52% of the gross customer assets. The Bank carries a provision of ~ 24% on restructured loans, which is in excess of regulatory limits.

Q4FY22Q3FY22Q4FY21
Gross NPA ₹*21822.3223301.1925314.84
Gross NPA %2.823.173.70
Net NPA ₹*5512.166513.056993.52
Net NPA %0.730.911.05
RoA** %1.461.301.11
*₹ are in Crores|** Return on Asset

(V) Capital Adequacy and Shareholders’ Funds :
The shareholders’ funds of the Bank grew 4% QOQ and stood at ₹1,15,025 crores as on 31st March 2022. Under Basel III, the Capital Adequacy Ratio (CAR) and CET1 ratio as on 31st March 2022 were 18.54% and 15.24% respectively. Additionally, the Bank held₹5,012 crores of COVID provisions, not considered for CAR calculation providing cushion of 60 bps over the reported CAR. The Book value per equity share increased from ₹332 as of 31st March, 2021 to₹375 as of 31st March, 2022.

Shares of Axis Bank Limited was last trading in BSE at ₹766.10 as compared to the previous close of ₹775.20. The total number of shares traded during the day was 207806 in over 8616 trades.

The stock last hit in BSE,

  • Intraday High of ₹ 772.85
  • Intraday low of ₹ 749.05