Axis Bank's Q2FY16 results were in- line with estimates as the earnings grew by 18.9% YoY (-3.2% QoQ) to Rs 19.2 led by a strong growth in the NII and lower opex and provision expenses. NII of Rs 40.6 bn (15.2% YoY growth and flat QoQ) also remained in-line with estimates. Strong growth in advances of 23.1% YoY and 4.7% QoQ was led by strong growth in corporate and retail advances. NIMs improved marginally by 4 bps QoQ to 3.85%. Asset quality remained stable as GNPA and NNPA came in at 1.38% and 0.48% respectively. Stressed asset formation at Rs25 bn, included accounts sold to ARCs worth Rs18.2bn.