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  1. Axis Bank skips dividend for 1st time in 10 years as provisions lead to Rs 2,189 crore net loss in Q4 FY18

Axis Bank skips dividend for 1st time in 10 years as provisions lead to Rs 2,189 crore net loss in Q4 FY18

Axis Bank Q4 Results 2018: India's third-largest private sector lender by assets Axis Bank Ltd reported a loss of Rs 2,188.74 crore for the quarter ended 31 March 2018 following a steep decline in the asset quality led by the escalation in the slippages.

By: | Updated: April 26, 2018 7:02 PM
Axis Bank Q4 Results 2018: Axis Bank’s net profit for the year ended 31 March 2018 dropped as much as 93% on a yearly basis to Rs 276 crores. (Image: Reuters)

Axis Bank Q4 Results 2018: India’s third-largest private sector lender by assets Axis Bank Ltd reported a loss of Rs 2,188.74 crore for the quarter ended 31 March 2018 following a steep decline in the asset quality led by the escalation in the slippages. Axis Bank has posted a net profit of Rs 1,225 crore in the January-March quarter of the financial year 2016-2017. As there were no profits, Axis Bank skipped declaring a dividend for the first time in the last 10 years. “After making mandatory appropriations to statutory reserve, investment reserve and capital reserve, no profits are available for distribution as dividend for the financial year ended 31 March 2018. Accordingly, no dividend has been recommended by the board of directors for the year ended 31 March 2018,” Axis Bank said in an exchange filing.

Axis Bank Q4 Loss

Core operating profit for Q4FY18 and FY18 declined by 12% year-on-year and 1% year-on-year respectively while net loss for Q4FY18 stood at Rs 2,189 crores and for the financial year 2017-2018 net profit dropped as much as 93% on a yearly basis to Rs 276 crores as compared to a net profit of Rs 3,679.28 crore in the corresponding quarter of last fiscal.

Axis Bank NPAs at 31 March 2018

On the assets front, at the end of 31 March 2018, Axis Bank’s gross and net NPAs shot up 6.77% and 3.40% from 5.28% and 2.56% as on 31 December 2017, respectively. Axis Bank has recognised slippages of Rs 16,536 crores during Q4FY18. This includes an accelerated recognition in the stressed loan book of the Bank, particularly in the power sector. It also includes a onetime impact driven by recent regulatory guidelines on the resolution of stressed assets.

In absolute terms, Axis Bank’s gross NPA stood at Rs 34,249 crores and net NPA stood at Rs 16,592 crores. Axis Bank made recoveries and upgrades to the tune of Rs 3,401 crores during the quarter while write-offs were Rs 3,887 crores at the end of 31 March 2017.

Axis Bank slippages

“Corporate lending slippages stood at Rs 13,938 crores. 90% of this came from disclosed BB & below accounts. The BB and below rated book has declined by 44% in this quarter and stood at Rs 8,994 crores. This is 1.8% of the Bank’s gross customer assets, and is down to 1/4th of the 7.3% peak reached in June 2016,” Axis Bank said in a statement.

Axis Bank Q4 Results 2018 Key Highlights

  1. Axis Bank’s balance sheet grew 15% year-on-year and stood at Rs 6,91,330 crores as on 31 March 2018.
  2. Axis Bank’s advances grew 18% YOY to Rs 4,39,650 crores as on 31 March 2018.
  3. Retail loans grew 23% YOY to Rs 2,06,465 crores and accounted for 47% of net advances.
  4. SME loans grew 19% YOY to Rs 58,740 crores and accounted for 13% of the net advances.
  5. Corporate credit grew 12% YOY to Rs 1,74,446 crores and accounted for 40% of net advances.
  6. Corporate loan growth was led by 63% growth in working capital loans.
  7. Axis Bank’s net interest income (NII) in Q4FY18 stood flat on a year-on-year basis at Rs 4,730 crores while net interest margin for Q4FY18 stood at 3.33%.
  8. NII for the financial year 2017-2018 rose 3% on a yearly basis to Rs 18,618 crores from Rs 18,093 crores during FY17.
  9. Axis Bank’s net interest margin for FY18 stood at 3.44%.

Shares of Axis Bank were among the top 10 losers among the components of BSE Sensex and NSE Nifty on Thursday. Axis Bank shares shuttled between a day’s high of Rs 501.05 and a day’s bottom of Rs 483.3 before closing down 1.5% at Rs 490.9 on NSE. Unusually high trading volumes were observed in the shares of Axis Bank on Thursday, at the closing of trade, more than 1.53 crore equity shares exchanged hands on both NSE and BSE with about 1.49 crore equity shares on NSE alone.

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