Private sector lender Axis Bank on Thursday reported a consolidated net profit of Rs 1,505.1 crore for the January-March quarter of 2018-19 on lower provisions.
In the corresponding quarter last year, the bank posted a net loss of Rs 2,188.74 crore. CNBC-TV18 Polls had predicted a profit of Rs 1,527 crore for the quarter under review.
Bank's GNPA (gross non-performing assets) and NNPA (net non-performing assets) fell for the fourth straight quarter and stood at 5.26 percent and 2.06 percent, down from 5.75 percent and 2.36 percent respectively as on December 31, 2018.
The bank has recognised slippages of Rs 3,012 crore during Q4FY19, compared to Rs 3,746 crore in Q3FY19 and Rs 16,536 crore in Q4FY18. Corporate lending slippages stood at Rs 1,369 crore.
As on March 31, 2019, the bank’s Gross NPA stood at Rs 29,789 crore and Net NPA stood at Rs 11,276 crore. Recoveries and upgrades from NPAs during the quarter were Rs 2,376 crore while write-offs were Rs 1,701 crore.
Net slippages (before write-offs) in retail and SME stood at Rs 215 crore and Rs 189 crore respectively. As on March 31, 2019, the bank’s provision coverage, as a proportion of Gross NPAs including prudential write-offs, stood at 77 percent up from 75 percent in Q3FY19.
The bank’s net interest income (NII) grew 21 percent YOY to Rs 5,706 crore during Q4FY19 from Rs 4,730 crore in Q4FY18. NII for FY19 grew 17 percent YOY to Rs 21,708 crore from Rs 18,618 crore in FY18. Net interest margin for Q4FY19 stood at 3.44 percent, NIM for FY19 stood at 3.43 percent.
Non-interest income (comprising of fee, trading profit and miscellaneous income) for Q4FY19 grew 26 percent YOY to Rs 3,526 crore as against Rs 2,789 crore during the same period last year. Fee income for Q4FY19 grew 23 percent YOY to Rs 3,020 crore.
The key driver of fee income growth was a retail fee, which grew 37 percent YOY and constituted 61 percent of the bank’s total fee income. Card fees grew strongly by 40 percent YOY. Transaction banking fees grew 7 percent YOY and constituted 18 percent of the total fee income of the bank.
It has recommended a dividend of Rs 1 per equity share of the face value of Rs 2 per equity share for the year ended March 31, 2019.
During Q4FY19, the bank added 86 branches to its network across the country. As on March 31, 2019, the bank had a network of 4,050 domestic branches, extension counters situated in 2,366 centres, 11,801 ATMs and 4,917 cash recyclers.Shares of Axis Bank settled at Rs 744.45 apiece, down 1.08 percent on the BSE.