Axis Bank's 2QFY16 result was in-line with our estimates as the earnings grew by 19.9% yoy and declined 3.2% qoq to Rs19.2bn. Earnings performed well mainly on account of healthy growth in core operating income (+14.8% yoy and 4.8% qoq) along with lower provision expenses (-2.5% yoy and -37% qoq). Headline asset quality remained stable sequentially due to lower fresh slippages along with proactive sale of loan to ARC. The bank sold loans worth Rs18.5bn and reported fresh slippages of Rs5.8bn during 2QFY16. Combined addition to gross NPA in 2Q stood at Rs26bn v/s Rs11.9bn in 1QFY16 and Rs9.1bn in 2QFY15. Loan book rose...