Axis Bank rises 3%

about 6 years ago
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Axis Bank is in the limelight today morning, post its healthy Q3FY18 performance. Though its profitability missed the estimates, the market is more enthused with the fact that its bad asset quality might actually be at the fag end.

The Bank posted a net profit of Rs.726 crore, up 25% (YoY). NII came at Rs. 4731 crore, up 9%. Loans showed a good 21% (YoY) growth.

In terms of asset quality, there was an improvement. Gross NPA declined from 5.9% to 5.28% and Net NPA too came in lower at 2.56% v/s 3.12% (QoQ).

There was a 50% drop in slippages but most brokerage and fund houses after the results expect slippages to stay elevated through FY18 and things would start looking up only in FY19.

Provision coverage, including prudential write-offs, increased to 66% v/s 60% (QoQ).

The bank's total exposure to stressed accounts undergoing resolution under the Insolvency and Bankruptcy Code, stood at Rs 6,074 crore as of Dec. 31 and this represents 68% of its exposure to such IBC accounts.

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