Axis Bank announces 160% surge in profit after tax for FY24
Axis Bank Limited, a major player in the Indian banking sector, has reported a remarkable financial performance for the fiscal year ending March 31, 2024. The bank’s profit after tax (PAT) surged by 160% year-over-year (YoY) to ₹24,861 crores, supported by strong growth in both deposits and loans, which increased by 13% and 14% respectively. Notably, the bank’s net interest margin (NIM) rose to 4.07%, up by 5 basis points (bps) YoY, while the consolidated return on assets (ROA) and return on equity (ROE) significantly increased to 1.84% and 19.29%, showing improvements of 99 bps and 1,003 bps YoY respectively.
For the fourth quarter of FY24, Axis Bank’s net interest income grew by 11% YoY and 4% quarter-over-quarter (QoQ), with a NIM of 4.06%. Fee income for the quarter rose by 23% YoY and 9% QoQ, with retail fees growing by 33% YoY. The bank’s operating profit for the quarter increased by 15% both YoY and QoQ, and the PAT for Q4 stood at ₹7,130 crores, up by 17% QoQ. The bank also reported strong annualized consolidated ROA and ROE of 2.07% and 20.87%, respectively, for the quarter.
Axis Bank has maintained a strategic focus on innovation and growth, as evidenced by several initiatives. The bank launched ‘open by Axis Bank’, a digital banking platform with about 250 features, and was the first to introduce interoperability on its Central Bank Digital Currency (CBDC) application and digital US dollar fixed deposits for Non-Resident Indian (NRI) customers. These efforts highlight the bank’s commitment to adopting cutting-edge technologies and enhancing customer service efficiency through initiatives like a GenAI-based chatbot.
In FY24, Axis Bank significantly expanded its physical presence, inaugurating its 5,000th branch in Ahmedabad and opening new branches across various states in India. The bank has also been focusing on enhancing its digital footprint, with Axis Mobile & Axis Pay now serving approximately 11 million non-Axis Bank customers.
The bank reported a healthy capital adequacy ratio (CAR) of 16.63%, with a CET 1 ratio of 13.74%. Asset quality showed improvement, with the gross non-performing assets (GNPA) percentage at 1.43%, a decrease of 59 bps YoY. The bank’s credit cost also showed a decline, contributing to robust financial health and stability.
Amitabh Chaudhry, MD & CEO of Axis Bank, commented on the bank’s performance, emphasizing the continuous focus on key areas such as Bharat Banking and digital innovations. He noted the successful integration with Citibank India and the bank’s commitment to diversity, equity, and inclusion.
With strong financial fundamentals, innovative digital banking solutions, and an expanding physical presence, Axis Bank is well-positioned to continue its growth trajectory. The bank’s strategic initiatives and robust performance indicators bode well for its future in the competitive banking landscape.
Axis Bank’s performance in FY24 exemplifies how traditional banking combined with strategic innovations and digital advancements can lead to substantial growth and enhanced customer satisfaction. The bank’s proactive approach in expanding both its physical presence and digital offerings positions it well for sustained growth in the dynamic banking sector.