CRISIL reaffirms rating of Axis Bank Limited

CRISIL Ratings has reaffirmed its 'CRISIL AAA/CRISIL AA+/Stable/CRISIL A1+' ratings on the debt instruments of Axis Bank Limited (Axis bank).

The ratings continue to reflect the bank's strong capitalization and strong market position and its comfortable resource profile. These strengths are partly tempered by the average asset quality.

The nationwide lockdown to contain the spread of Covid-19 pandemic impacted disbursements and collections of financial institutions. The lockdown has been eased in phases. Delay in return to normalcy will continue to constrain collections and asset quality of financial institutions. Axis Bank has provided moratorium to its borrowers in line with the relief measures provided by the Reserve Bank of India (RBI). Additionally, any change in the payment discipline of borrowers can affect delinquencies. Also, a one-time restructuring scheme announced by the Reserve Bank of India (RBI) will provide necessary support to affected borrowers in the current environment. Axis bank has restructured maximum of 0.42% (0.10% been implemented in third quarter of fiscal 2021) of its gross customer assets as on December 31, 2020. The bank's asset quality and its consequent impact on earning profile will remain a key monitorable.

Shares of AXIS BANK LTD. was last trading in BSE at Rs.710.25 as compared to the previous close of Rs. 663.5. The total number of shares traded during the day was 1192612 in over 29628 trades.

The stock hit an intraday high of Rs. 716.85 and intraday low of 654.5. The net turnover during the day was Rs. 822344049.

Source : Equity Bulls

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