Higher margins and non-core income lift Axis Bank Q4 profit
Axis Bank, India's fourth-largest private lender by market capitalisation, has reported a robust profit of ₹7,129.67 crore for the March quarter, supported by margin expansion and higher non-core incomes. The bank expects deposit growth to be a constraint in the short term.
The bank had reported a loss of ₹5,728 crore in the corresponding period a year ago on goodwill impairment following Citibank's portfolio acquisition. The bank had reported a net profit of ₹6,071 crore in October-December 2023 period, translating into a 17% increase in profit on a sequential basis.
Net interest margin (NIM) improved by 5 basis points quarter on quarter to 4.06% due to better spreads and improvement in asset quality. The NIM during the December quarter stood at 4.01%.
By contrast, India's most valued lender HDFC Bank last week reported an NIM of 3.44%, with a mild improvement in comparison with the January quarter.
«We continue to state that based on whatever we are hearing and seeing in the marketplace, the deposit growth will remain a constraint, liquidity will remain tight,» said Amitabh Chaudhry, MD & CEO of Axis Bank.
The board declared a dividend of ₹1 per equity share of face value of ₹2 per equity share for FY24.
The bank saw total deposits grow by 13% on year on year (YOY) and 6% quarter on quarter (QoQ) on period end basis, of which savings account deposits grew 2% YoY and 4% QoQ. The share of CASA deposits in total deposits stood at 43% in FY24 from 47% in FY23.
Net interest income, difference between interest
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