Axis Bank Q4 Net Profit Expands By 18%
Waseem Ahmad / 28 Apr 2014
Axis Bank's net profit jumped 18.4% in the fourth quarter, driven by strong growth in interest income. The private sector lenders net profit for the quarter ended March 31, 2014 rose to Rs.1,842 crore.
Axis Bank, one of the largest private sector banks in India, has released its financial results for fourth quarter ended and year ended on March 31, 2014. The bank has posted good set of number for the year despite of stressed economic scenario. The bank’s total interest earned registered double digit growth of 13.2% in Q4FY14 and stood at Rs 7965.2 crore against Rs 7047.5 crore in Q4FY13.
Net interest income(NII) for the bank also showed a strong growth of 18.81% in the said quarter and surged to Rs 3165.5 crore against Rs 2664.7 crore in Q4FY13.
The NII growth of the bank was mainly driven by strong increase in loan portfolio of the bank which rose by 16.8% to Rs 2.30 lac crore in Q4FY14 from Rs 1.96 lac crore in Q4FY13.
Operating profit of the bank stood at Rs 3247.7 crore in Q4FY14 against Rs 2799.7 crore in Q4FY13, went up by 16% during the quarter. Further net profit of the bank recorded a sharp increase of 18.5% in Q4FY14 and reached to Rs 1842.3 crore from Rs 1555.2 crore in same quarter of last year.
If we take a look at the segment-wise performance, Treasury function of the bank which alone contribute 51% of total revenue, went up by 10.14% to Rs 1196.85 crore in Q4FY14. Retail banking segment (26% of total revenue) rose by 26% to Rs 6193 crore and corporate banking segment (22 of total revenue) registered a growth of 9.8% to Rs. 5108.4 crore in the same period of the last year.
Despite of strong growth in advances the bank has been able to marginally improve its asset quality. Gross NPAs (Non performing assets) of the bank came down to 1.22% in Q4FY14 from 1.25% in Q3FY14. Further its net NPA improved to 0.4% during the quarter from 42% in Q3FY14. But during the said quarter the bank has sharply increased its provision by 149.5% QoQ to Rs 505 crore from Rs 202.5 crore in Q3FY14. However its return on assets has improved to 2.01% from 1.94% in corresponding quarter of previous year.
As far as its yearly performance is concerned, the bank’s interest earned registered a growth of 13% to Rs 30735.9 crore in FY’ 14 while its NII recorded a considerable growth of 20.5% during the year. Operating profit of the bank increased by 23.5% to 11589.7 crore in FY’ 14 and Net profit went up 20.5% to 6309.2 crore in said period.
At CMP of Rs 1546.45 per share, the bank discount 2.19x of its book value.
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