Axis Bank has reported a net profit Rs1,225 crore for the quarter ended March 2017 (Q4FY17), recording a 111% increase QOQ. On a YOY basis, the net profit for Q4FY17 and FY17 contracted by 43% and 55%, to Rs 1,225 crore and Rs 3,679 crore, respectively.
The bank’s other income (comprising fee, trading profit and miscellaneous income) for Q4FY17 grew by 12% YOY to Rs 3,013 crore as against Rs 2,694 crore during the same period last year. Trading profits for the quarter grew 350% YOY and stood at Rs 428 crore. Fee income for Q4FY17 grew by 8% YOY to Rs 2,423 crore. Fees from retail banking grew by 17% YOY and constituted 46% of the bank’s total fee income, while the transaction banking fees grew by 11% YOY and constituted 22% of the total fee income of the bank.
During FY17, other income grew 25% YOY and stood at Rs 11,691 crore. For FY17, fee income grew 5% YOY, primarily driven by 15% YOY growth in retail fee and 11% YOY growth in transaction banking.
The bank’s balance sheet grew 11% YOY and stood at Rs 6,01,468 crore as on 31st March 2017. The bank’s advances grew 10% YOY to Rs 3,73,069 crore as on 31st March 2017. Retail advances grew 21% YOY and 12% QOQ to Rs 1,67,993 crore and accounted for 45% of the net advances of the bank. Corporate credit grew marginally to Rs 1,55,904 crore; and accounted for 42% of net advances. SME advances grew 10% YOY and 14% QOQ to Rs 49,172 crore. The book value of the bank’s investments portfolio as on 31st March 2017, was Rs 1,28,793 crore, of which Rs 93,008 crore were in government securities, while Rs 26,667 crore were invested in corporate bonds and Rs 9,118 crore in other securities such as equities, preference shares, mutual funds, etc.
CASA deposits grew 26% YOY and 21% QOQ, and constituted 51% of total deposits as at end of 31st March 2017. Savings account balances grew 19% YOY and 7% QOQ while the current account deposits grew 37% YOY and 49% QOQ for the period ended 31st March 2017. CASA, on a cumulative daily average basis, recorded a growth of 23% YOY, in which both savings bank deposits and current account deposits recorded a growth of 24% YOY and 22% YOY, respectively.
During Q4FY17, the bank added 93 branches to its network across the country, pushing up the tally to 400 new branches opened during FY17 compared to 315 branches in FY16. As on 31st March 2017, the bank had a network of 3,304 domestic branches and extension counters situated in 1,946 centres compared to 2,904 domestic branches and extension counters situated in 1,855 centres last year. As on 31st March 2017, the bank had 14,163 ATMs and 1,349 cash recyclers spread across the country.
During the quarter, the card usage witnessed significant growth of 83% YOY in value terms. Fee from the cards business grew by 30% YOY. Mobile banking channel also witnessed a sharp growth of 54% YOY and 76% YOY in number of transactions and value terms, respectively. During the quarter, the share of digital transactions further improved to 66% from 58% in Q3FY17 while ATM and branch transactions moderated to 21% and 13% from 23% and 19% in Q3FY17, respectively.