Axis Bank Ltd. share price target

1QFY22 marks the manifestation of sequentially higher provisioning expenses (35bn v/s 33bn in the previous quarter) and decrease in net profit to 22bn against 28bn in the previous quarter. The bank's reported slippage number remains moderately higher (65bn v/s 53bn in 4QFY21)...

Axis Bank has posted strong 94% surge in the net profit to Rs 2160 crore with healthy CASA growth, steady operating performance and resilient balance sheet. Net Interest Income of the bank has increased 11%, while fee income surged 62%. Bank delivered a strong performance across segments in Q1FY22 despite the impact of second wave of Covid-19 cases in the period. The loan book growth of the bank has improved to 12% end June 2021, led by balanced growth across segments. Retail loans grew 14%, SME loans up 18%. Saving account deposits grew 19% supporting CASA deposits to grow 19 and CASA ratio improving 342 bps to 42%. The bank has witnessed slight moderation in loan growth with GNPA % rising to 3.85% and NNPA % to...

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Axis Bank is the thirdlargest private sector bank in India in terms of asset size.

Asset quality performance improved as GNPA, NNPA ratio declined to 3.7%, 1.05% from 4.55% (proforma) and 1.19% (proforma) QoQ, respectively. Slippages declined from | 7993 crore (proforma) to | 5285 crore QoQ while write-offs for the quarter remained elevated at | 5553 crore. The bank did not sell any NPAs to ARC during the quarter. Restructured book under Covid19 framework was at 0.3% of gross customer assets and has 26% provisions against the same. The bank has | 5012 crore worth provisions against potential impact of Covid-19, of which | 1882 crores, represents prudent provision above regulatory requirement and balance | 3130 crore is...

Continuing to tick all the right boxes

Axis bank earnings of Rs26.8bn (PLe: Rs19.6bn) saw a strong beat on back of better than expected other income and lower provisioning. PPOP grew by 17%, although core PPOP grew by 9% YoY as NII growth looked slightly weaker with growth of 11% YoY which was lower than 16% of FY21. Headline asset quality was better due to better recovery/upgrades & higher write -off of Rs55.3bn (89bps of loans). Bank has maintained PCR of 72% and 80bps of COVID provisions over and above regulatory specific provisions on non NPAs. With legacy NPAs provided for, better growth and initiatives are...

4QFY21 marks the manifestation of sequentially lower provisioning expenses (32.9bn v/s 46.0bn in the previous quarter) and surge in net profit to 26.8bn against 11.1bn in the previous quarter. As the asset classification resumes, the bank's reported slippages number remains low (52.9bn v/s 79.9bn pro-forma slippages in 3QFY21) with GNPA and NNPA ratio declined to 3.70% and 1.05% respectively against the Pro-forma GNPA and NNPA ratio of 4.55% and 1.19% in the previous quarter. The bank's PCR (including TWO) has seen further improvement to 88% v/s 87% in the previous quarter. Moreover the resolution rate (98%) stood better than pre-COVID level. Furthermore, the BB & below book inched down sequentially by 28bps to 1.09% of customer...

The bank has showed acceleration in the business growth driven by improved loan growth of 9%. On deposits front, the bank has showed steady growth in stable and granular retail deposits. On QAB basis, CASA ratio stood at 42%, up 320 bps YOY and 39 bps QOQ The bank is well capitalized with adequate liquidity buffers. Overall capital adequacy ratio (CAR)...

Axis Bank' asset quality improved (surprised positively) sequentially with GNPA declined to 3.7% vs 4.55% QoQ (as per IRAC norms) led by higher write offs (Rs.55.5bn vs 42.6bn QoQ) and decline in slippage ratio (3.4% vs 5.5% QoQ). BB & below book declined by 10% QoQ and restructured assets stood at 0.3% of customer assets as against earlier estimates of 1.7% are key positives during the quarter. PAT grew by 140% QoQ (vs loss of Rs.13.9bn YoY) led by lower provisions (down 28% QoQ). NII grew by 11% YoY led by slight improvement in NIMs at 3.56% (3.55% YoY). PPoP grew by 17% YoY (up 13% QoQ) led by decline in cost to income ratio (44% vs 46% YoY). With management change behind, strong capital in place and focus on secured retail portfolio,...