Axis reports Rs 5,7000 crore Q4 loss over Citi deal
MUMBAI: Axis Bank has reported a net loss of Rs 5,728 crore for the March quarter after it took a Rs 12,490-crore charge from its acquisition of Citis retail business. Without the exceptional item, net profit in Q4 stood at Rs 6,625 crore, which grew by 61% year-on year and 13% quarter-on-quarter. The bank had reported a net profit of Rs 4,118 crore in the year-ago period.The countrys third-largest private banks core operating profit for the quarter grew 46% year-on-year to Rs 9,084 crore, and its operating profit for Q4 rose 42% year-on year to Rs 9,168 crore. Analysts said the net profit (barring exceptional items) beat estimates because of lower provisioning for bad loans.Axis Bank reported a loss due to the exceptional item, which was in line with expectations attributed to Citibanks retail portfolio acquired. Exceptional items included Rs 12,490 crore towards a mortisation of intangibles assets, including goodwill, one-time acquisition cost, additional provisions and other operating expenses related to the acquisition. Overall asset quality metrics are stable, said Rahul Malani of Sharekhan by BNP Paribas.Axis Banks net profit for FY23 (excluding exceptional items) grew 68% to Rs 21,933 crore from Rs 13,025 crore in FY22. However, reported net profit (after factoring in the Citi charge) for FY23 fell by 26% year-on-year to Rs 9,580 crore. The bank has recommended a dividend of Re 1 per equity share for FY23, subject to shareholder approval.We believe the Indian economy is alive and kicking and set for a decade of solid growth. The interest rate hike cycle has ended, and we feel there will be a prolonged period where rates will remain stable. We will make the best use of this opportunity to gain market share, said MD & CEO Amitabh Chaudhry.Net interest income grew 33% year-on-year and 2% quarter-on-quarter to Rs 11,742 crore, and net interest margin for Q4 stood at 4. 2%, up 73 basis points (100bps = 1 percentage point) year-on-year.
Friday, April 28, 2023 at 1:35 am