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.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.