Axis Bank Ltd., incorporated in the year 1993, is a banking company (having a market cap of Rs 230692.11 Crore).
Financials
For the quarter ended 30-06-2021, the company has reported a Consolidated Total Income of Rs 20285.41 Crore, down -3.53 % from last quarter Total Income of Rs 21028.45 Crore and up 4.23 % from last year same quarter Total Income of Rs 19461.77 Crore. The bank reported net profit after tax of Rs 2356.91 Crore in latest quarter.
Investment Rationale
AXIS Bank has delivered an in line performance, even as slippages stood elevated, resulting in a slight deterioration in asset quality. On the business front, loan growth remains flat due to a muted business environment, while margin witnessed a sequential decline. On asset quality, total restructuring stood controlled at 0.44% of loans (including approved, but not implemented). Though slippages could remain elevated in the near term, healthy PCR of ~70%, coupled with additional provisions buffer of 2%, would likely protect the Balance Sheet against any potential stress. The brokerage expects credit cost to moderate to 1.5%/1.3% over FY22E/FY23E. It largely maintains earnings estimate for FY22E/FY23E and estimate AXSB to deliver a RoA/RoE of 1.6%/15.2% in FY23E.
Promoter/FII Holdings
Promoters held 11.4 per cent stake in the company as of June 30, 2021, while FIIs held 53.7 per cent, DIIs 23.7 per cent and public and others 11.3 per cent.
(Disclaimer: Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.
