Axis Bank Ltd. share price target

Earnings in line; asset quality deteriorates slightly Motilal Oswal values your support in the Asiamoney Brokers Poll 2021 for India Research, Sales, Corporate Access and...

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...

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

PCR steady at >70%; additional provisioning buffer provides comfort Axis Bank (AXSB) reported a strong quarter, with PAT above our estimates, aided by lower provisions. Business growth was strong across segments, with retail disbursements at an all-time high. On the asset quality front, the slippage trend subsided sequentially (INR52.8b v/s INR67.4b in 3Q) and total restructuring stood at 0.3% of loans. Also, the total funded and non-funded book declined to 2.0% of loans (v/s 2.4% in 3QFY21). Also, AXSB has ~72% coverage on GNPL and...

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)...