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Ventura Wealth Clients
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Axis Bank released their Q4 FY24 results, exceeding analyst expectations and marking a considerable turnaround from the previous year's loss. Let's delve deeper into the key highlights and what they signal for the bank's future.

Axis Bank Q4 results: profit surpasses expectations

  • Axis Bank delivered a net profit of ₹7,130 crore in Q4 FY24, significantly surpassing analyst predictions of approximately ₹6,000 crore.
  • This profit comes after a loss of ₹5,728.4 crore in the same quarter of the previous financial year, signifying a remarkable recovery.

Axis Bank Q4 results: strong revenue growth

  • Net Interest Income (NII), a key measure of a bank's profitability from core lending activities, stood at ₹13,089 crore. This again outperformed analyst expectations of ₹12,803.9 crore.
  • The strong NII indicates healthy loan growth and efficient interest rate management by the bank.

Axis Bank Q4 results: improved asset quality

  • Gross Non-Performing Assets (NPAs), a measure of bad loans, witnessed a slight decrease compared to the previous quarter.
  • Net NPAs also showed improvement, reflecting a decline in the percentage of non-repayable loans.
  • The bank's provision coverage ratio (cumulative provisions to total risk-weighted assets) stood at a healthy level, indicating adequate reserves to cover potential loan losses.

Axis Bank Q4 results: full-year performance

  • The bank's full-year net profit for FY24 came in at a robust ₹24,861 crore, a significant rise from ₹9,580 crore in FY23.
  • This growth highlights the bank's overall financial health and profitability.

Axis Bank Q4 results: capital raise and dividend

  • To further strengthen its financial position, Axis Bank's board approved raising funds of up to ₹20,000 crore.
  • This capital infusion can be used for various purposes, including loan growth, technological advancements, and strategic acquisitions.
  • The board also recommended a dividend of ₹1 per share for FY24, showcasing confidence in the bank's future performance.

Axis Bank Q4 results: market reaction

  • Shares of Axis Bank responded positively to the news, closing at ₹1064.05 on the BSE, a 0.72% increase.
  • This positive market reaction reflects investor confidence in the bank's recovery and growth prospects.

Looking ahead

  • Axis Bank's Q4 results demonstrate a remarkable turnaround and a return to profitability.
  • The bank's focus on improving asset quality, strong revenue growth, and strategic capital raise position it well for future growth.
  • Investors will be keen to see how the bank utilises the raised funds and navigates the evolving economic landscape.

Overall, Axis Bank's Q4 results paint a positive picture of the bank's recovery and future prospects. The strong financial performance, combined with the capital raise and dividend announcement, indicates a bank is on a confident path forward.

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