Axis Bank shares gain over 5% on strong growth performance across the board

Shares of Axis Bank jumped over 5% in trade on Thursday, April 25, after the private sector lender reported strong financial numbers for the quarter and financial year ended March 2024 (Q4FY24).

Axis Bank shares gained as much as 5.3% to hit an intra-day high of ₹1,119.5 apiece on the National Stock Exchange of India (NSE). This is the fifth consecutive session of gains for Axis Bank shares, with the stock having gained over 8% cumulatively during this period.

Strong bottom-line growth

On Wednesday, Axis Bank reported a stand-alone net profit of ₹7,129 crore for Q4FY24 compared with a net loss of ₹5,728 crore in the year-ago quarter.Net interest income (NII) in March quarter of FY24 stood at ₹29,224.5 crore, up 22% compared with nearly ₹23,970 crore reported in the year-ago period.Axis Bank clarified that the numbers for the year-ago March quarter include the impact of exceptional items relating to the Citibank business acquisition.

Superior asset quality

Investors also took a note of the improving asset quality at Axis Bank. As of March 2024, the lender’s reported gross non-performing assets (NPAs) and net NPAs as a percentage of total loan portfolio stood at 1.43% and 0.31%, respectively, compared to 1.58% and 0.36% as on December 2023.

The bank’s board of directors also recommended a dividend of ₹1 per equity share of face value of ₹2 each for FY24.

Fund raising plans for future growth

Besides that, the board approved plans to raise funds through the issuance of debt instruments in Indian or foreign currency, with an aggregate amount of up to ₹35,000 crore. The third largest private lender in India aims to raise an additional ₹20,000 crore through the issuance of equity shares, depository receipts, or other instruments linked to equity shares. Shares of Axis Bank were trading at ₹1,108 apiece, up 4.21%, on the NSE at 9:58 am.