Axis to outperform in better mkt conditions: Angel Broking

In an interview with CNBC-TV18, Vaibhav Agrawal, Banking Analyst at Angel Broking feels that Axis Bank's asset quality is more or less in line with expectations and there is nothing that can be taken as a negative as yet.

Agrawal also believes that once the business environment improves, Axis Bank is going to be one of the biggest outperformers in the banking space.

Below is the edited transcript of the interview on CNBC-TV18.

Q: Is the asset quality worrisome?

A: On the face of it, it clearly looks like there is an increase, little bit more than expected. But I think we would prefer to wait for more details on the exact number on slippages, restructuring and what is the specific NPA provisions and things like that.

Overall, it looks like more or less in line, definitely on operating as well as on asset quality. It’s not really a material negative either and I think further details could probably clarify if it is really worst than expected on slippages. Broadly, nothing much to take away in terms of negative. Even asset quality is broadly in line.

Q: About 12% rise in gross NPL from 1800 to 2100 does look like in line?

A: Yes it looks probably about a Rs 100 crore or so more than what we were expecting. But, we really have to look at what the recovery number was during the quarter as well. Too early to comment on whether the slippages were necessarily much higher. But, just a little bit higher than expected is how we will put it.