Axis Bank - 1QFY21 - Mr. Jaikishan Parmar, Sr. Equity Research Analyst, Angel Broking Ltd

"Axis bank PAT declined 19% YoY, which is marginally below our estimate. NII grew 20% YoY primarily supported by the lower cost of funds. Other income declined by 33% YoY, this is primarily owing to lower business activity. The cost to income declined 500bps to 39% sequentially. Axis bank advance at 13% YoY, The corporate and retail book grew by approx. 15.5%, however, SME loan book compressed 7.3%. The big surprise is moratorium % to advance plunged from 25-28% mentioned in the Q4FY20 investor call to 9% in Q1FY21. On asset quality front, GNPA and NNPA declined to 4.72% and 1.23%, from 4.86% and 1.56%, respectively on the QOQ basis. Improvement in asset quality led by lower slippages in higher provision. Bank is continuously improving PCR which provides comfort on asset quality, considering all provision (including specific + standard + additional + COVID provisions) stands at 104% of GNPA at Q1FY21.

Considering lower moratorium number, higher provision converge, strong performance by subsidiary and lower valuation compared to the historical average will keep positive movement in stock price."

Shares of AXIS BANK LTD. was last trading in BSE at Rs.446.2 as compared to the previous close of Rs. 433.8. The total number of shares traded during the day was 1437957 in over 20241 trades.

The stock hit an intraday high of Rs. 450.55 and intraday low of 438.65. The net turnover during the day was Rs. 639232895.

Source : Equity Bulls

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