Axis Bank Q4 Results Review - Net Interest Margins Stable; Loss Reported Due To Citi Portfolio: IDBI Capital

IDBI Capital Report

Axis Bank Ltd.’s credit growth stood at 19% (Citi portfolio impact) versus 15% YoY (Q3 FY23); adjusted growth stood at 16% YoY (excluding Citi book).

Asset quality improved as gross non-performing asset stood at 2.0% versus 2.4% led by better recoveries. Outstanding Covid restructured assets stood at 0.22% versus 0.3% lower than its peers.

Axis Bank reported loss of Rs 57 billion due to onetime expenses of Rs 124.9 billion on account of Citi portfolio. Net interest income grew by 33% YoY backed by improvement in NIMs which stood at 4.22% versus 3.5% YoY (4.26% QoQ).

Pre provision operating profit grew by 42% YoY backed by lower cost to income ratio. Provisions declined by 70% YoY (78% QoQ) due to better asset quality; thus adjusted profit after tax grew by 68% YoY.

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