Axis Bank to raise Rs 35,000 crore through debt; Rs 20,000 crore through equity

25 Apr 2024 , 03:37 PM

Axis Bank has reported a notable turnaround in its financial performance, posting a net profit of ₹7,130 Crore for the fourth quarter of the fiscal year. This marks a significant improvement from the loss of ₹5,762 Crore incurred during the corresponding period last year. To further strengthen its financial position, the bank's board approved a fund-raising initiative involving the issuance of debt instruments worth ₹35,000 Crore and equity worth ₹20,000 Crore.

The net interest income (NII) of the private sector lender increased 11.47% to ₹13,089 Crore from ₹11,742 Crore in the previous year. NII is the difference between the interest revenue collected from lending activities and the interest paid to depositors.

The gross non-performing asset (NPA) percentage of Axis Bank was 1.43%, compared to 2.02% a year earlier. In contrast to 0.39%, net NPAs were at 0.31%.

For the year ending March 31, 2024, the board of directors of the lender has recommended a dividend of ₹1 per equity share, with a face value of ₹2. The bank's net slippage ratio was 0.57%, down 28 basis points year over year, and its gross slippage ratio was 1.48%.

For Q4FY24, specific loan loss provisions were ₹832 Crores, while provisions and contingencies were ₹1,185 Crores. At the end of FY24, the bank had cumulative provisions (standard plus additional non-NPA) of ₹12,134 Crores.

The bank's net profit for the entire year was ₹24,861 Crore, up from ₹9,580 Crore in FY23.

Axis Bank's MD and CEO, Amitabh Chaudhry, stated: "Axis Bank charted a course of steady progress in FY24." We remained steadfastly committed to our three main areas of focus: Sparsh, our customer obsession program, Digital, and Bharat Banking. However, I think we were also quick to seize some exciting new opportunities that presented themselves. We are moving toward the ultimate milestone, LD2, in the next six months with our Citi integration proceeding as planned."

The net interest margin (NIM) of Axis Bank, which is the percentage difference between interest paid on deposits and interest earned on loans, increased somewhat from 4.01% to 4.06% in the preceding quarter but decreased from 4.22% a year earlier.

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