The private lender reported net profit of Rs 2677 crore in Q4 FY21 compared with net loss of Rs 1387.78 crore in Q4 FY20.
Total income during the quarter declined marginally by 0.03% to Rs 20,213.46 crore in Q4 FY21 over Q4 FY20. The bank posted a pre-tax profit of Rs 3569.67 crore in Q4 FY21 compared with pre-tax loss of Rs 1878.91 crore in Q4 FY20.The bank's operating profit for the quarter grew 17% YoY and 13% QoQ to Rs 6,865 crore. Net interest income (NII) increased by 11% YoY to Rs 7,555 crore in Q4 FY21. Net interest margin (NIM) for Q4FY21 was 3.56%, as against 3.55% for Q4FY20.
Provisions (other than tax) and contingencies stood at Rs 3294.98 crore in Q4 FY21 compared to Rs 7730.02 crore in Q4 FY20. Specific loan loss provisions for Q4 FY21 were Rs 7,038 crores (including reclassification of NPA provision of Rs 4,266 crore on account of Supreme Court judgment shown as other provision in prior quarter), compared to Rs 4,204 crores in Q4FY20. During the quarter, the bank has made additional provision aggregating Rs 803 crore on account change in NPA provision rates on loans to commercial banking segment.
The bank holds cumulative provisions (standard+additional other than NPA) of Rs 12,010 crore at the end of Q4 FY21. As on 31st March 2021, the bank's provision coverage, as a proportion of gross NPAs stood at 72%, as compared to 69% as at 31 March 2020 and 75% as at 31 December 2020.
On the asset quality side, gross non-performing assets (NPAs) stood at Rs 25,314.84 crore as on 31 March 2021 as against Rs 21,997.90 crore as on 31 December 2020 and Rs 30,233.82 crore as on 31 March 2021.
The gross NPA ratio declined to 3.7% as on 31 March 2021 from 3.44% as on 31 December 2020 and 4.86% as on 31 March 2020. The net NPA ratio was at 1.05% as on 31 March 2021 as compared to 0.74% as on 31 December 2020 and 1.56% as on 31 March 2020.
As on 31 March 2021, the bank's provision coverage, as a proportion of Gross NPAs stood at 72%, as compared to 69% as at 31 March 2020 and 75% as at 31 December 2020.
Gross slippages during the quarter were Rs 5,285 crore, compared to Rs 7,993 crore during Q3FY21 and Rs 3,920 crore in Q4FY20. Slippages from the loan book were at Rs 5,038 crore and that from investment exposures stood at Rs 247 crore.
The total deposits grew by 10% on period end basis and by 9% YoY on quarterly average balance (QAB) basis. CASA (on QAB basis) was up 18% YoY and 7% QoQ. CASA ratio stood at 42%, improving 320 bps YoY and 39 bps QoQ.
The bank's advances including TLTRO investments grew 12% YOY to Rs 6,41,794 crore as on 31 March 2021. The bank's loan to deposit ratio stood at 88%, improving by 109 bps YOY. Retail loans grew 10% YoY and 7% QoQ to Rs 3,34,514 crore and accounted for 54% of the net advances of the Bank. Domestic retail loans grew 11% YoY and 7% QoQ. The share of secured loans was 81%with home loans comprising 36% of the retail book.
The bank posted a 305% jump in net profit to Rs 6588.50 crore on a 0.4% rise in total income to Rs 78483.49 crore for the year ended 31 March 2021 as compared to year ended 31 March 2020.
Amitabh Chaudhry, MD & CEO of Axis Bank said, As an organization, we have traversed a phenomenal distance last year. We have transformed ourselves in line with the evolving business scenario to become more agile, more relevant and totally dedicated to the needs of millions of customers. From strengthening our digital capabilities, providing flexible employment opportunities to playing our part in the community during these difficult times, Axis has come a long way and we hope to continue with the good work.
As on 31st March 2021, the private bank had a network of 4,594 domestic branches and extension counters situated in 2,596 centres.
Shares of Axis Bank fell 0.16% to Rs 699.30 on Tuesday.
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