AXIS Bank Ltd announces financial results for Q4 and FY2020 ended March 31, 2020

The Board of Directors of Axis Bank Limited approved the financial results for the quarter and year ended 31st March 2020 at its meeting held in Mumbai on Tuesday, 28th April 2020.

Profit & Loss Account: Period ended 31st March 2020

Operating Profit and Net Profit

The Bank’s operating profit for the quarter was Rs. 5,851 crores, up 17% YOY from Rs. 5,014 crores in Q4FY19. Net loss for Q4FY20 stood at Rs. 1,388 crores.

For FY20, the operating profit grew 23% YOY to Rs. 23,438 crores from Rs. 19,005 crores in FY19. For FY20 Net profit de-grew 65% YOY to Rs. 1,627 crores, and was impacted on account of higher provisions taken in FY20 and the one time DTA charge taken in Q2 to incorporate revised corporate tax rates. Adjusted for these one-offs, net profit for FY20 would have been Rs. 5,182 crores up 11% YoY.

Net Interest Income and Net Interest Margin

The Bank’s Net Interest Income (NII) grew 19% YOY to Rs. 6,808 crores during Q4FY20 from Rs. 5,706 crores in Q4FY19. NII for FY20 rose 16% YOY to Rs. 25,206 crores from Rs. 21,708 crores in FY19. Net interest margin for Q4FY20 was 3.55%, NIM for FY20 stood at 3.51%.

Other Income

Non-Interest Income (comprising of fee, trading profit and miscellaneous income) for Q4FY20 grew 13% to Rs. 3,985 crores. Fee income for Q4FY20 grew 6% QOQ to Rs. 2,931 crores. Retail fees constituted 64% of the Bank’s total fee income. Transaction Banking fee, part of wholesale fees grew 8% YOY. Miscellaneous Income, for the quarter stood at Rs. 790 crores as compared to Rs. 153 crores in Q4FY19 driven by higher recoveries during the quarter.

For FY20, Non-Interest Income grew 18% YOY and stood at Rs. 15,537 crores, of which fee income grew 9% YOY primarily driven by 15% YOY growth in Retail fee and 6% YOY growth in Transaction banking. For FY20, the recoveries in writtenoff accounts stood at Rs. 1,553 crores.

Provisions and contingencies

Specific Loan Loss Provisions for Q4FY20 were Rs. 4,204 crores, compared to Rs. 1,714 crores in Q4 last year and Rs. 2,962 crores in Q3FY20. The Bank held additional provisions of around Rs. 2,558 crores towards various contingencies at the end of Q3FY20. The Bank made other provisions aggregating Rs. 3,526 crores in Q4 FY20 of which Rs. 3,000 crores is towards COVID-19. At March 31, 2020, the Bank holds in aggregate additional provisions of Rs. 5,983 crores. It is pertinent to note that this is over and above the NPA provisioning included in our PCR calculations, and the 0.4% standard asset provisioning requirement on Standard assets.

The overall additional provisions held by the Bank towards various contingencies together with the standard asset provisions, translate to a standard asset coverage of 1.3% at March 31, 2020.

Balance Sheet: As on 31st March 2020

The Bank’s balance sheet grew 14% YOY and stood at Rs. 9,15,165 crores as on 31st March 2020.

The total deposits on quarterly average basis (QAB) grew by 19% and 17% YOY on period end basis. Savings account deposits grew 13% YOY and 3% QOQ, Current Account deposits grew 11% YOY and Retail Term Deposits grew 33% YOY. CASA and Retail Term Deposits on a QAB basis put together recorded a growth of 22% YOY. The share of CASA and Retail Term Deposits in the Total Deposits was 80% as of 31st March 2020.

The Bank’s advances grew 15% YOY to Rs. 5,71,424 crores as on 31st March 2020. The Bank’s loan to deposit ratio stood at 89%. Retail loans grew 24% YOY to Rs. 3,05,400 crores and accounted for 53% of the net advances of the Bank. The growth in Retail advances was driven by all product segments across home loans, auto loans, personal loans, small business loans etc. The share of secured loans was 80% with home loans comprising 35% of the Retail book. SME loan book stood at Rs. 61,921 crores. 85% of the SME book is secured with predominantly working capital financing, and is well diversified across geographies and sectors. Corporate loan book grew by 11% to Rs. 2,04,103 crores. 83% of Corporate book is now rated A and above with 95% of incremental sanctions in FY20 being to corporates rated A- and above.

The book value of the Bank’s Investments portfolio as on 31st March 2020, was Rs. 1,56,734 crores, of which Rs. 1,25,982 crores were in government securities, while Rs. 21,303 crores were invested in corporate bonds and Rs. 9,449 crores in other securities such as equities, preference shares, mutual funds, etc. Out of these, 73% are in held till maturity (HTM) category, while 23% of investments are available for sale (AFS) and 4% are in held for trading (HFT) category.

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Capital Adequacy and Shareholders’ Funds

The shareholders’ funds of the Bank grew 27% YOY and stood at Rs. 84,948 crores as on 31st March 2020. Under Basel III, the Capital Adequacy Ratio (CAR) and CET1 ratio as on 31 st March 2020 were 17.53% and 13.34% respectively.

Asset Quality

As on 31st March 2020, the Bank’s Gross NPA and Net NPA levels were 4.86% and 1.56% respectively, as against 5.00% and 2.09% respectively as on 31st December 2019.

The Bank has recognized slippages of Rs. 3,920 crores during Q4FY20, compared to Rs. 6,214 crores in Q3FY20 and Rs. 3,012 crores in Q4FY19. Slippages from the loan book were at Rs. 3,418 crores and that from investment exposures stood at Rs. 502 crores. Corporate slippages stood at Rs. 1,839 crores. Excluding one account of Rs. 750 crores which got upgraded during the quarter and downgraded again out of total corporate slippages, 84% of this came from previously disclosed BB and below rated clients (fund based loans, non-fund based loans and investment holdings). Recoveries and upgrades from NPAs during the quarter were Rs. 2,489 crores while write-offs were Rs. 1,270 crores. Consequently, net slippages (before write-offs) for the quarter stood at Rs. 1,431 crores compared to Rs. 3,792 crores in Q3FY20 and Rs. 636 crores in Q4FY19. Net slippages (before write-offs) in Retail and SME stood at Rs. 305 crores and Rs. 107 crores respectively.

As on 31st March 2020, the Bank’s Gross NPA stood at Rs. 30,234 crores and Net NPA stood at Rs. 9,360 crores. As on 31st March 2020, the Bank’s provision coverage, as a proportion of Gross NPAs stood at 69%.


During Q4FY20, the Bank added 113 branches (including extension counters) to its network across the country. As on 31st March 2020, the Bank had a network of 4,528 domestic branches and extension counters situated in 2,559 centres compared to 4,050 domestic branches and extension counters situated in 2,366 centres last year. As on 31st March 2020, the Bank had 12,044 ATMs and 5,433 cash recyclers spread across the country.


Axis Bank continues to remain amongst the top players in mobile banking space – both in terms of transaction value and volumes, as per the latest RBI data available till January 2020. Axis Bank’s mobile banking transaction volumes in Q4 grew by 79% YOY while the mobile spends reported a growth of 44% YOY. Axis Bank currently has 92 million registered Virtual Private Address (VPA) with the Bank. The Bank processed over 580 million Unified Payment Interface (UPI) transactions in Q4 with total transaction value growing 109% YOY to Rs. 63,391 crores. During the quarter, credit card usage witnessed growth of 10% YOY in value terms to Rs. 18,321 crores. The share of digital transactions in the overall transaction mix for the Bank remained strong at 84% as at end of March 2020. The contribution of Digital channels towards the business growth continues to rise steadily; 66% of fixed deposits, 53% of new mutual fund SIPs sourced and 48% of personal loan disbursements in Q4 were through digital channels.

Wealth Management Business – Burgundy

The Bank’s wealth management business has seen strong growth and is among the largest in India with assets under management of over Rs. 147,000 crores as at end of March 2020. Burgundy Private that was launched in December 2019 for the high and ultra-high net worth clients, has scaled up rapidly to cover over 850 families across 15 key locations with assets of nearly Rs. 18,000 Crores as at March 31, 2020.

Amitabh Chaudhry, MD&CEO, Axis Bank said, “The crisis we are facing as a nation is a long drawn one and it will need courage, grit and a fighting spirit to combat it. We believe in learning from all adversaries. For example, the lock-down has taught us how Work From Home (WFH) can be more productive and convenient. We are now exploring if WFH can become a part of our work culture going ahead. We will keep learning and pushing our limits to emerge stronger as an organization.”

Shares of AXIS BANK LTD. was last trading in BSE at Rs.455.55 as compared to the previous close of Rs. 427.3. The total number of shares traded during the day was 1503750 in over 27923 trades.

The stock hit an intraday high of Rs. 458.25 and intraday low of 435.4. The net turnover during the day was Rs. 671281444.