AXIS Bank Ltd’s Q4 FY2020 Results – Key Highlights

Strong operating performance:

– Operating profit for Q4FY20 grew by 17% YOY to 5,851 crores
– Net Interest Income in Q4FY20 grew by 19% YOY to Rs. 6,808 crores; NIM was 3.55%
– Operating profit for FY20 grew by 23% YOY to Rs. 23,438 crores
– Net Interest Income in FY20 grew by 16% YOY to Rs. 25,206 crores; NIM for FY20 was 3.51%
– Net profit for FY20 was Rs. 1,627 crores. Adjusted for the one-offs, net profit for FY20 would have been Rs. 5,182 crores up 11% YoY

Growth in Deposits continues to drive Loan growth:

– Total deposits grew 19% YOY on quarterly average basis (QAB)
– Savings Account deposits grew 13% YOY, Current Account deposits grew by 11% YOY and Retail Term Deposits (RTD) were up 33% YOY on QAB basis. CASA ratio was 39% on QAB basis
– The Bank added 478 branches to its domestic network in FY20
– Loan book grew by 15% YOY with Retail loans up 24% YOY and Corporate loans up 11% YOY

Well capitalized with adequate liquidity buffers:

– Overall capital adequacy at 17.53% with Common Equity Tier 1 ratio of 13.34% at the end of FY20
– Liquidity Coverage Ratio, currently at 120%, with excess SLR of Rs. 48,463 Crores

Business segments’ performance:

– Retail loans accounted for 53% of total loans; Retail fee constituted 64% of total fees
– 80% of Retail book is secured, home loans constitute 35%
– Over 80% of the unsecured loans are to ETB customers and over 80% are to salaried
– In Corporate segment, 83% of the book and 95% of incremental sanctions are to A- and above;

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Asset quality metrics improving, additional provisions held of Rs. 5,983 crores:

– NNPA declined to 1.56%, from 2.09% on QOQ basis
– GNPA impact of 11 bps on account of April 17 2020, dispensation not availed for June 7 2019
– During the quarter, the Bank has made provisions of Rs. 7,730 crores including Rs. 3,000 crores related to COVID; taking the overall additional provisions held by the Bank to Rs. 5,983 crores. 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.
– Overall PCR* improved to 69% as at end of Q4FY20, compared to 60% for Q3FY20 and 62% for Q4FY19

Among the top players in the digital space:

– Mobile banking spends grew 44% YOY
– Market share in UPI transactions stood at 15% for Q4FY20; quarterly transactions up 135% YOY
– Share of digital channels in sourcing fixed deposits and personal loan disbursements stood at 66% and 48%, respectively in Q4FY20

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.