Axis Bank dropped 4.93% to Rs 433.10 after the bank reported a net loss of Rs 1,387.78 crore in Q4 March 2020 compared with net profit of Rs 1,505.06 crore in Q4 March 2019.
The private lender's pre-tax loss stood at Rs 1,879 crore in Q4 March 2020 compared with profit before tax of Rs 2,303 crore in Q4 March 2019. Total income rose 10% to Rs 20,219 crore in Q4 March 2020 over Q4 March 2019. The result was announced after market hours yesterday, 28 April 2020.
The bank's provisions and contingencies surged 185.09% to Rs 7,730.02 crore in Q4 March 2020 over Q4 March 2019. The provision amount includes Rs 3,000 crore related to Covid-19, taking the overall additional provisions held by the bank to Rs 5,983 crore.
"The overall additional provisions held by the bank towards various contingencies together with the standard asset provisions, translate to a standard asset coverage of 1.3% at 31 March 2020," the bank said.
The bank's gross non-performing assets (NPAs) stood at Rs 30,233.82 crore as on 31 March 2020 as against Rs 30,073.02 crore as on 31 December 2019 and Rs 29,789.44 crore as on 31 March 2019.
The ratio of gross NPAs to gross advances stood at 4.86% as on 31 March 2020 as against 5% as on 31 December 2019 and 5.26% as on 31 March 2019. The ratio of net NPAs to net advances stood at 1.56% as on 31 March 2020 as against 2.09% as on 31 December 2019 and 2.06% as on 31 March 2019.
The bank's Net Interest Income (NII) grew 19% year-on-year (YoY) to Rs 6,808 crore during Q4 March 2020 from Rs 5,706 crore in Q4 March 2019. Net interest margin for Q4 March 2020 was 3.55%.
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The total deposits on quarterly average basis (QAB) grew by 19% and 17% YoY on period end basis. The share of CASA and retail term deposits in the total deposits was 80% as of 31 March 2020. The bank's advances grew 15% Y-o-Y to Rs 5,71,424 crore as on 31 March 2020.
The private lender's net profit fell 65% to Rs 1,627 crore on 15% rise in total income to Rs 78,172 crore in the year ended March 2020 (FY20) over the year ended March 2019 (FY19). PBT fell 30% to Rs 4,904 crore in FY20 over FY19.
Commenting on the Q4 result, Amitabh Chaudhry, the managing director & CEO of Axis Bank, said that, The crisis we are facing as a nation is a long drawn one and it will need courage, grit and a fighting spirit to combat it. We believe in learning from all adversaries. For example, the lock-down has taught us how Work From Home (WFH) can be more productive and convenient. We are now exploring if WFH can become a part of our work culture going ahead. We will keep learning and pushing our limits to emerge stronger as an organization.
During Q4 March 2020, the bank added 113 branches to its network across the country. As on 31 March 2020, the bank had a network of 4,528 domestic branches and extension counters situated in 2,559 centres compared to 4,050 domestic branches and extension counters situated in 2,366centres last year. As on 31 March 2020, the bank had 12,044 ATMs and 5,433 cash recyclers spread across the country.
Meanwhile, in a separate announcement on Tuesday, Axis Bank said its board of directors approved a plan to raise or borrow Rs 35,000 crore.
"The board has authorised the bank to borrow/raise funds in Indian currency or foreign Currency by issue of debt Instruments including but not limited long term bonds, non-convertible debentures, perpetual debt instruments and Tier II capital bonds up to an amount of Rs 35,000 crore, the bank said in a notification. The bank will seek the approval of the shareholders in its 26th annual general meeting.
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