Axis Bank is a bright star this morning. The stock price surged almost 4% to Rs.632.90 on the back of its encouraging numbers for Q2FY19.
The posted an all-round improvement, right from profitability to asset quality in current Q2, which in the current circumstances is reassuring.
On a 15% (YoY) rise in NII at Rs.5232 crore, the Bank posted a very smart 83% jump in net profit at Rs.790 crore. NUM improved from 3.26% to 3.39% (QoQ).
The biggest cheer was on the asset quality front. Gross NPA came down from 6.52% to 5.96% while Net NPA too reduced from 3.09% to 2.54% (QoQ).
Provisions were reduced from Rs.3338 crore to Rs.2927 crore, sequentially, while the provision coverage ratio, including write-offs, rose to 73% from 69%. Slippages declined 69% (YoY) to Rs 2,777 crore.
The current MD & CEO of the Bank is just a few months away from leaving. Amitabh Chaudhry, will join the bank in an executive position starting November 19. This will facilitate a smooth transition and help familiarise him with the business before he assumes charge as MD & CEO starting January 1, 2019.