Axis Bank: The bank’s profit has grown by 305 per cent in FY21 as compared to FY20. It increased from Rs 1,627 crore to Rs 6,588 crore
Axis Bank: Axis Bank has shown a profit of Rs 2,677 crore in the fourth quarter results. At the same time, the bank had a loss of Rs 1,387.8 crore in this quarter of Jinwari-March last year. At the same time, the interest income (Net Interest Income -NII) increased by 11 percent to Rs 7,555 crore as compared to Rs 6,808 crore in the March quarter of last year. If we look at the net interest margin, it has been almost flat. It was 3.55 per cent in the fourth quarter of FY 2020, while in the fourth quarter of FY 2021 it has come down to 3.56 per cent.
Axis Bank: Improvement in asset quality
Axis Bank’s gross NPA was 3.7 percent and net NPA was 1.05 percent. There has been improvement on both front as gross NPA was 4.55 per cent in the December quarter and net NPA was 1.19 per cent. The lower the NPA the bank is, the better the health of the bank. That is, the asset quality of the bank has improved on a quarterly basis.
Provisioning figures
Bank (Axis Bank) has also made provisions for loan losses of Rs 7,038 crore in the fourth quarter (this includes provisions related to NPA reclassification of Rs 4,266 crore as per the Supreme Court ruling). At the same time, provisioning was Rs 4,204 crore in the fourth quarter of FY 2020.
Apart from this, the bank has also made additional provisioning of Rs 803 crore due to the change in the NPA provision rate in the commercial banking segment.
Axis Bank’s non-interest income, which includes other income such as fees, trading profits, increased by 17 per cent year-on-year to Rs 4,668 crore.
The bank did not give any dividend this financial year in view of the Corona crisis.
Co-promoter made in Max Life
Let us tell you that earlier this month, Axis Bank acquired Max Life Insurance Company and now together with Axis Capital and Axis Securities, the bank holds a total of 12.99 per cent stake in the company. Axis Bank is now a co-promoter of the company.
Performance in FY 2021
In the last financial year, Axis Bank’s NII grew by 16 per cent to Rs 29,239 crore from Rs 25,206 crore in FY 2020. There was a jump of 6 percent in operating expenses, while the cost to asset ratio was 1.96 percent.
The bank’s operating profit grew by 10 per cent to Rs 25,702 crore and provisioning was Rs 16,896 crore for the entire financial year. The bank’s net profit has grown by 305 per cent in FY21 as compared to FY20. It increased from Rs 1,627 crore to Rs 6,588 crore.
