CNBC-TV18 Polls had predicted a profit of Rs 2,175.1 crore for the quarter under review.
Private sector lender Axis Bank on Tuesday reported a net profit of Rs 2,677 crore for the quarter ended March 2021. In the corresponding quarter last year, the lender had posted a loss of Rs 1,388 crore. CNBC-TV18 Polls had predicted a profit of Rs 2,175.1 crore for the quarter under review.
Total income during the latest quarter stood at Rs 20,213.46 crore against Rs 20,219.57 crore in the year-ago period, Axis Bank said in a regulatory filing. Provisions for bad loans and contingencies in the fourth quarter of the last fiscal declined significantly to Rs 3,294,98 crore compared to Rs 7,730.02 crore same quarter in the previous financial year.
The bank's net interest income (NII) grew 11 percent YOY to Rs 7,555 crore in Q4FY21 from Rs 6,808 crore in Q4FY20. Net interest margin (NIM) for Q4FY21 was 3.56 percent, as against 3.55 percent for Q4FY20.
Fee income for Q4FY21 stood at Rs 3,376 crore, up 15 percent YOY and 16 percent QOQ. Retail fees grew 16 percent YOY and 17 percent QOQ and constituted 64 percent of the bank's total fee income.
Overall, non-interest income (comprising of fee, trading profit, and miscellaneous income) for Q4FY21 grew 17 percent YOY to Rs 4,668 crore, from Rs 3,985 crore in Q4FY20.
Specific loan loss provisions for Q4FY21 were Rs 7,038 crore (including reclassification of NPA provision of Rs 4,266 crore on account of Supreme Court judgment shown as other provision in the prior quarter), compared to Rs 4,204 crore in Q4FY20.
During the quarter, the bank has made additional provisions aggregating Rs 803 crore on account change in NPA provision rates on loans to the commercial banking segment. Net of the above 2 adjustments, specific loan loss provision for Q4 FY21 would have been Rs 1,969 crore.
The shareholders' funds of the bank grew 20 percent YOY and stood at Rs 1,01,603 crore as of March 31, 2021. Under Basel III, the Capital Adequacy Ratio (CAR) and CET1 ratio as of March 31, 2021, including FY21 profits were 19.12 percent and 15.40 percent respectively.
Additionally, the bank held Rs 5,012 crore of COVID provisions, not considered for CAR calculation providing a cushion of 69 bps over the reported CAR. The book value per equity share increased from Rs 301 as of March 31, 2020, to Rs 332 as of March 31, 2021.
As of March 31, 2021, the bank's reported gross NPA and net NPA levels were 3.70 percent and 1.05 percent respectively as against 4.55 percent and 1.19 percent as of December 31, 2020. This reflects the decline of 116 bps and 51 bps respectively on a YOY basis and a decrease of 85 bps and 14 bps on GNPA and NNPA respectively on a sequential basis.
Meanwhile, the board authorized the bank to raise funds in Indian or foreign currency by issue of debt Instruments including but not limited long term bonds, non-convertible debentures, perpetual debt instruments, AT 1 Bonds, Infrastructure Bonds, and Tier II Capital Bonds up to an amount of Rs 35,000 crore. It further said, the shareholders' funds of the bank grew 20 percent on annual basis and stood at Rs 1,01,603 crore as of March 31, 2021.
On Tuesday, the shares of Axis Bank ended 0.16 percent lower at Rs 699.30 apiece on the BSE.
(Edited by : Jomy)
First Published: IST