Stocks

Axis Bank rises as Q2 profit beat estimates

Reuters Mumbai | Updated on November 05, 2018 Published on November 05, 2018

Banking stocks took a beating on Friday after weak IIP and inflation data. Axis Bank ended 2.48 per cent lower to close at Rs. 523.9 on the BSE M Vedhan

Shares of Axis Bank rise as much as 3.4 per cent to Rs 631.3, their highest since September 21.

The private sector lender on Friday posted a better-than-expected 82.6 per cent jump in Q2 profit, boosted by higher interest income and as asset quality improved

The lender's provisions for the quarter fell 6.8 per cent to Rs 2,927 crore, while bad loan additions slowed sharply to Rs 2,777 crore.

Nomura says Q2 “clearly indicates a turning point in profitability for the bank, as net interest margins (NIM) are on an improving trend that should drive faster pre-provision operating profit growth”

Nomura raises the target price to Rs 750 from Rs 630 earlier, maintains rating at 'buy'

Axis Bank remains well positioned to build up on its strong positioning in a tight liquidity environment with a likely pick up in growth along with NIM improvement,” said Deutsche Bank (DB)

DB says Axis Bank is one of its top picks, expects a strong earnings revival and says it retains 'buy' with a price target of Rs 750.

Axis Bank's “credit costs should fall materially from Q3 onwards, as they are running ahead of their PCR (Provision Coverage Ratio) target and slippages are declining” , it said.

 

 

Published on November 05, 2018
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