Improving Operating Metrics; Execution Remains Key for Rerating Axis Bank's 2QFY20 operating metrics were largely in line with our estimates, with NII and PPoP growth of 16% and 45% respectively. The miss in PAT estimates was mainly driven by higher provisions and the one-off impact of DTA markdown of Rs21.4bn during the quarter, excluding which PAT grew by 157% YoY to Rs20.2bn (low base). Despite elevated slippages at 4% of advances, GNPA ratio declined by 22 bps QoQ aided by higher write-offs. Domestic loan book grew by a healthy 19% YoY, while de-growth in overseas book dragged the overall loan growth to 14% YoY. Growth in fee income stood at a modest 12% YoY owing to a weaker growth...