AXIS Bank Ltd Q4FY21 consolidated net profit jumps to Rs. 2941.41 crore

AXIS BANK LTD. has reported financial results for the period ended March 31, 2021.

Financial Results (Q4 FY20-21) - QoQ Comparison

The company has reported total income of Rs.21028.45 crores during the period ended March 31, 2021 as compared to Rs.19910.93 crores during the period ended December 31, 2020.

The company has posted net profit / (loss) of Rs.2941.41 crores for the period ended March 31, 2021 as against net profit / (loss) of Rs.1317.91 crores for the period ended December 31, 2020.

The company has reported EPS of Rs.9.58 for the period ended March 31, 2021 as compared to Rs.4.30 for the period ended December 31, 2020.

Financials	Q4 FY20-21	Q3 FY20-21	% Change
Total Income	₹ 21028.45 crs	₹ 19910.93 crs	5.61%
Net Profit	₹ 2941.41 crs	₹ 1317.91 crs	123.19%
EPS	₹ 9.58	₹ 4.30	122.79%

Financial Results (Q4 FY20-21) - YoY Comparison

The company has reported total income of Rs.21028.45 crores during the period ended March 31, 2021 as compared to Rs.20786.23 crores during the period ended March 31, 2020.

The company has posted net profit / (loss) of Rs.2941.41 crores for the period ended March 31, 2021 as against net profit / (loss) of Rs.(1262.43) crores for the period ended March 31, 2020.

The company has reported EPS of Rs.9.58 for the period ended March 31, 2021 as compared to Rs.(4.48) for the period ended March 31, 2020.

Financials	Q4 FY20-21	Q4 FY19-20	% Change
Total Income	₹ 21028.45 crs	₹ 20786.23 crs	1.17%
Net Profit	₹ 2941.41 crs	₹ (1262.43) crs	333%
EPS	₹ 9.58	₹ (4.48)	313.84%

Financial Results (Year ended FY 20-21) - YoY Comparison

The company has reported total income of Rs.80847.94 crores during the 12 months period ended March 31, 2021 as compared to Rs.80057.67 crores during the 12 months period ended March 31, 2020.

The company has posted net profit / (loss) of Rs.7195.50 crores for the 12 months period ended March 31, 2021 as against net profit / (loss) of Rs.1853.11 crores for the 12 months period ended March 31, 2020.

The company has reported EPS of Rs.24.13 for the 12 months period ended March 31, 2021 as compared to Rs.6.80 for the 12 months period ended March 31, 2020.

Financials	Year Ended FY20-21	Year Ended FY19-20	% Change
Total Income	₹ 80847.94 crs	₹ 80057.67 crs	0.99%
Net Profit	₹ 7195.50 crs	₹ 1853.11 crs	288.29%
EPS	₹ 24.13	₹6.80	254.85%

Axis Bank has been at the forefront of customer centric innovations and announced a series of cutting-edge solutions last quarter. In a first for Indian banks, Axis Bank launched its range of wearable contactless payment devices 'Wear N Pay' that are secure and budget-friendly, available in the form of bands, key-chains and watch loops. The Bank launched 'Aura' - a credit card for the health conscious, curated with several health and wellness benefits, like free doctor consultations, fitness sessions, health check-ups etc. Axis Bank also announced its strategic partnership with Hyundai Motor India to offer smart auto retail financing solutions to urban and rural customers, enabling quick and hassle-free online car financing.

The bank launched and scaled an array of new digital products. The digital savings and current account products already operate at scale and have delivered superlative customer experience as well as financial benefits. Launched in October, Grabdeals - a platform for everyday discounts, has received great response from customers and will be scaled up further this year. Along with Freecharge, a new product 'Buy Now Pay later' was introduced. Axis Bank also launched digital outward remittance and digital forex card issuance, enabling customers to access forex easily via the Bank's digital channels. Further, Whatsapp Banking with a full scale integration of products across Savings Accounts, Credit Cards, Deposits and Loans, has made Banking as easy as sending a message.

The efforts received both customer validation and recognition. The Bank was awarded 'Best Digital Bank in India' by Asiamoney and Financial Express for the second and third consecutive year respectively and 'Best Bank - Innovation' by Business Today, amongst a host of other prestigious accolades.

Amitabh Chaudhry, MD&CEO, 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."

The Bank's balance sheet grew 9% YOY and stood at Rs. 9,96,118 crores as on 31st March 2021. The total deposits grew by 10% on period end basis and by 9% YOY on quarterly average balance (QAB) basis. On QAB basis, Savings account deposits grew 17% YOY and 6% QOQ, Retail savings deposits grew 20% YOY, current account deposits grew 18% YOY and 10% QOQ; and retail term deposits (RTD) grew 14% YOY and 4% QOQ. On QAB basis, CASA and RTD deposits put together grew 16% YOY and 6% QOQ. The share of CASA plus RTD deposits in total deposits on QAB basis was up 535 bps YOY to 86% as of 31st March 2021.

The Bank's advances including TLTRO investments grew 12% YOY to Rs. 6,41,794 crores as on 31st 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 crores 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. Retail disbursements touched new alltime highs led by higher contribution from secured loan segments. Disbursements in Consumer segment were up 45% YOY & 44% QOQ, with secured segments like home loans up 73% YOY and 45% QOQ, and LAP up 53% YOY and 51% QOQ. SBB disbursements grew 71% YOY and 42% QOQ. SME loan book grew 13% YOY and 10% QOQ^ to Rs. 69,850 crores.

89% of the SME book is secured with predominantly working capital financing, and is well diversified across geographies and sectors. Corporate loan book including TLTRO investments grew by 16% YOY and 9% QOQ^. 85% of corporate book is now rated A- and above with 94% of incremental sanctions in FY21 being to corporates rated A- and above.

The book value of the Bank's Investments portfolio as on 31st March 2021, was Rs. 2,26,120 crores, of which Rs. 1,84,190 crores were in government securities, while Rs. 34,904 crores were invested in corporate bonds and Rs. 7,026 crores in other securities such as equities, mutual funds, etc. Out of these, 74% are in held till maturity (HTM) category, while 23% of investments are available for sale (AFS) and 3% are in held for trading (HFT) category.

The shareholders' funds of the Bank grew 20% YOY and stood at Rs. 1,01,603 crores as on 31st March 2021. Under Basel III, the Capital Adequacy Ratio (CAR) and CET1 ratio as on 31st March 2021 including FY21 profits were 19.12% and 15.40% respectively. Additionally, the Bank held Rs. 5,012 crores of COVID provisions, not considered for CAR calculation providing cushion of 69 bps over the reported CAR. The Book value per equity share increased from Rs. 301 as of 31st March, 2020 to Rs. 332 as of 31st March 2021.

The Board of Directors of the Bank at their meeting held today have considered it prudent to not propose any dividend for the year ended 31st March, 2021, in light of the situation developing around Covid-19 in the country and related uncertainty that it creates.

As on 31st March 2021, the Bank's reported Gross NPA and Net NPA levels were 3.70% and 1.05% respectively as against 4.55% and 1.19% as on 31st December 2020. This reflects 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.

Gross slippages during the quarter were Rs. 5,285 crores, compared to Rs. 7,993 crores during Q3FY21 and Rs. 3,920 crores in Q4FY20. Slippages from the loan book were at Rs. 5,038 crores and that from investment exposures stood at Rs. 247 crores. Recoveries and upgrades from NPAs during the quarter were Rs. 3,462 crores while write-offs were Rs. 5,553 crores. Consequently, there were net slippages in NPAs (before write-offs) for the quarter of Rs. 1,822 crores as compared to Rs. 5,831 crores in Q3FY21 and net slippages of Rs. 1,431 crores in Q4FY20.

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 31st March 2020 and 75% as at 31st December 2020.

The standard restructured loans under resolution framework for COVID-19 related stress as at March 31, 2021 stood at Rs. 1,848 crores that translates to 0.3% of the gross customer assets. The Bank carries a provision of 26% on restructured loans, which is in excess of regulatory limits.

As on 31st March 2021, the Bank had a network of 4,594 domestic branches and extension counters situated in 2,596 centres compared to 4,528 domestic branches and extension counters situated in 2,559 centres as at end of 31st March 2020. As on 31st March 2021, the Bank had 11,333 ATMs and 5,710 cash recyclers spread across the country. The Bank's Axis Virtual Centre channel expanded during the year from three centres to six centres and had over 1500 Virtual Relationship Managers as on 31st March 2021.

Shares of AXIS BANK LTD. was last trading in BSE at Rs.699.3 as compared to the previous close of Rs. 700.4. The total number of shares traded during the day was 880968 in over 17119 trades.

The stock hit an intraday high of Rs. 704 and intraday low of 684.25. The net turnover during the day was Rs. 611974590.

Source : Equity Bulls

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