Buy Axis Bank around Rs 1000-1010: PN Vijay

Vijay told CNBC-TV18, “Axis Bank reported reasonably good results. I think they beat street expectations slightly in the bottom line and net interest margins held out inspite of some high cost deposits. The issue was non-performing assets where they have shown a slight increase but given the fact that the economy has slowed down considerably last quarter this is acceptable. So I wouldn’t say that these results were anyway bad. They were reasonably good.”

He further added, “In this particular counter lot of positions has been build-up ahead of the results. If you see the last ten days or so it’s been going up quite strongly and I would imagine that it will become an excellent buy around Rs 1,000-1,010 levels because going forward I feel most of these banks would improve their profitability and their balance sheet because of the effort being put in by the government especially on the power front, lot of talk is going on of converting many of the State Electricity Board (SEB) loans into equity, into grants etc which means there might be a large write back of power NPAs by all these banks. So going forward I am quite bullish about Axis Bank. I am not surprised that people sold off because lot of positions had been build-up and I would buy Axis Bank around Rs 1,000-1,010 levels.”