Axis Bank reported a positive set of numbers on the operating front for 3QFY2016 with PAT growing by 14.5% yoy to Rs2,175.3cr surpassing street as well as our expectations. Asset quality deteriorated with surge in gross and net NPA ratios to 1.68% and 0.75% from 1.38% and 0.48% sequentially. Slippages at elevated levels; Advances growth remains healthy During 3QFY2016, the bank reported an advance growth of 21.0% yoy, while deposits grew by 16.2% yoy. The retail book grew by 26.8% yoy and accounted for 40% of the advances. Overall, for the current financial year, the bank expects credit growth to be of around 20%. The CASA ratio came in at 43.2%, declining by 100bp qoq, while it improved by 12bp on a yoy basis. The NIM declined by 6bp qoq and stood at 3.79% in spite of the cost of funds falling by 13bp qoq to 5.86%. The sequential decline of 13bp in the banks cost of funds is primarily driven by moderation in the cost of term deposits and further aided by the banks continued focus on CASA. Asset quality deteriorated with surge in Gross and Net NPA ratios to 1.68% and 0.75% from 1.38% and 0.48% in the...