Axis Bank Q4FY23 reports net loss of Rs-5,362 crore due to Rs12,489 crore Citi acquisition write-off
Axis Bank reported 31% growth in total revenues for the March 2023 quarter on consolidated basis at Rs30,126cr. Revenue growth was 7.27% in sequential terms for Q4FY23. The company reported a net loss of Rs-5,362 crore in the fourth quarter on account of a hit of Rs12,489 crore that the bank had to take on account of the Citi acquisition.
Had it not been the provision for the Citi acquisition, Axis Bank would have actually reported a net profit of Rs7,127 crore and this is a one-time write off taken by the company. Otherwise, the bank saw growth across retail banking, wholesale banking and treasury operations with the maximum contribution to operating profits coming from corporate banking.
Financial highlights for Mar-23 compared yoy and sequentially
| Axis Bank | |||||
| Rs in Crore | Mar-23 | Mar-22 | YOY | Dec-22 | QOQ |
| Total Income | ₹ 30,126 | ₹ 23,001 | 30.98% | ₹ 28,084 | 7.27% |
| Operating Profit | ₹ 9,645 | ₹ 6,887 | 40.05% | ₹ 9,765 | -1.23% |
| Net Profit | ₹ -5,362 | ₹ 4,418 | N.A. | ₹ 6,187 | N.A. |
| Diluted EPS | ₹ -17.43 | ₹ 14.36 | ₹ 19.88 | ||
| Operating Margins | 32.02% | 29.94% | 34.77% | ||
| Net Margins | -17.80% | 19.21% | 22.03% | ||
| Gross NPA Ratio | 2.02% | 2.82% | 2.38% | ||
| Net NPA Ratio | 0.39% | 0.73% | 0.47% | ||
| Return on Assets (Ann) | -1.83% | 1.46% | 1.92% | ||
| Capital Adequacy | 17.64% | 18.54% | 17.60% |
Axis Bank has seen its gross NPAs come down to 2.02% while the net NPAs were comfortable at 0.39%. The growth in NII has also been steady while Axis Bank has maintained net interest margins or NIMs of close to 4.3%. Operating margins at 32% are robust and at par with the other leading banks in India.