Broker's call: Axis Bank (Buy)

| Updated on May 09, 2021

Anand Rathi

Axis Bank (Buy)

Target: ₹830

CMP: ₹716.75

Axis Bank has reported a net interest income growth of 11 per cent in its Q4FY21 standalone results at ₹7,555 crore as against ₹6,808 crore in Q4FY20, driven by advances growth of 12 per cent and a net interest margin of 3.56 per cent. Non-interest income (comprising of fee, trading profit and miscellaneous income) for Q4FY21 stood at ₹4,668 crore, as compared to ₹3,985 crore in Q4FY20.

Operating profit for Q4FY21 stood at ₹6,865 crore, up 17 per cent yoy. During the quarter, the bank has made provisions of ₹3,295 crore. The lender reported standalone profit of ₹2,677 crore, as compared to a loss of ₹1,388 crore in Q4FY20.

As on March 31, 2021, the bank’s gross NPA and net NPA levels were 3.70 per cent and 1.05 per cent respectively, as against 3.44 per cent and 0.74 per cent respectively as on December 31, 2020.

Given the healthy asset mix, liability strength, adequate capital and superior customer profile, we believe the bank is poised to face near term challenges and benefit in the phase of normalisation. We continue to remain positive on the company over medium to longer term perspective.

Published on May 09, 2021

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