Axis Bank’s Operating Profit Jumps (Image Source: iStockphoto)
Axis Bank Limited has reported financial results for the fourth quarter of fiscal 2024, exceeding market expectations and showcasing robust growth across key metrics. The private sector lender’s standalone net profit surged to Rs 7,129.7 crore, marking an improvement from the loss of Rs 5,728.4 crore recorded in the corresponding period last year.
The bank’s net profit witnessed a substantial increase of 17.4 per cent, reaching Rs 7,129.7 crore compared to Rs 6,071 crore in the previous year. Net interest income also demonstrated positive growth, rising by 4 per cent to Rs 13,089 crore from Rs 12,532 crore. The bank displayed a commendable performance in asset quality management, with gross NPA (non-performing assets) decreasing to 1.43 per cent from 1.58 per cent on a quarter-on-quarter basis, and net NPA declining to 0.31 per cent from 0.36 per cent.
The operating profit for the quarter stood at Rs 10,536 crore, reflecting a year-on-year and quarter-on-quarter growth of 15 per cent. The core operating profit for Q4FY24 reached Rs 9,515 crore, marking a 5 per cent year-on-year increase and an 8 per cent quarter-on-quarter rise.
For the full fiscal year 2024, Axis Bank delivered impressive financial performance across various parameters. Net interest income for FY24 surged by 16 per cent year-on-year to Rs 49,894 crore, while fee income witnessed robust growth of 28 per cent to reach Rs 20,257 crore.
The operating profit increased by 16 per cent to Rs 37,123 crore, and core operating profit grew by 10 per cent to Rs 35,393 crore. The bank’s total provisions for FY24 stood at Rs 4,063 crore, marking a significant 53 per cent year-on-year increase. Notably, net profit for FY24 soared by an impressive 160 per cent to Rs 24,861 crore from Rs 9,580 crore in the previous fiscal year.
Moreover, the Board of Directors of Axis Bank, in its meeting held on April 24, 2024, has recommended a final dividend of Re. 1 per equity share, subject to approval at the ensuing 30th Annual General Meeting. As per the bank’s filing on exchange, “we hereby inform you that the Board of Directors of Axis Bank Limited (“Bank”) at its meeting held today, i.e., April 24, 2024, has recommended a final dividend of Re. 1/- per equity share i.e., 50 per cent of the face value of Rs. 2/- each, for the financial year ended March 31, 2024, subject to approval of the members of the Bank at the ensuing 30th Annual General Meeting (“AGM”). The dividend, if approved, will be paid within 30 days from the date of conclusion of the AGM.”
On Wednesday, the shares of Axis Bank closed at Rs 1,065, 0.88 per cent up from the previous day’s closing. The 52 week high and low of the share is Rs 1,151.85 and Rs 853.65 respectively.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. TT Research DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
