The well capitalised bank should emerge stronger post this difficult phase and could be a possible acquiree if the leadership void persists, given that most of the troubled areas that could have dissuaded a possible acquirer are now getting addressed. At 1.8 times FY19e book, the current consolidation phase provides a great accumulation opportunity for long-term investors.
While there was no doubt among experts about what kind of numbers the lender had reported, their approach toward the stock is quite different from one another's.
Net Interest Income is expected to increase by 5.6 percent Y-o-Y (up 5.5 percent Q-o-Q) to Rs. 4,992.4 crore, according to ICICI Direct.
Net Interest Income is expected to decrease by 1 percent Y-o-Y (down 1 percent Q-o-Q) to Rs. 4,693.2 crore, according to KR Choksey.
The results will be closely watched given the persistent pressure on asset quality
Axis Bank, which came out with its third-quarter numbers today, managed to beat street expectations on most parameters but there are some concerns on issues like non-watch list slippages. In an interview with CNBC-TV18, Rakesh Tarway of Reliance Securities shared his take on the numbers.
The bank’s earnings beat analyst expectations, with improvement in asset quality performance.
The stock valued at 2.1X FY19 has headroom for re-rating once provision normalizes to historic average levels, few quarters down the line.
Analysts said if gross non-performing assets come below 6 percent and net interest margin above 3.5 percent (against 3.45 percent in Q2FY18) then that could be taken positively by the Street.
Despite a 34 percent drop in net profit at Rs 2,058 crore from a year ago, the Mumbai-based bank saw its gross non-performing assets (NPAs) in the three month period July-September decreased even as it spiked from a year-ago period.
YES BANK - bad loans have surged as Q2 shows a significant divergence from the Reserve Bank of India’s (RBI) assessment to the tune of over Rs 6,300 crore. In an interview to CNBC-TV18, Siddharth Purohit of SMC Institutional Equities shared his views and outlook on the YES BANK’s Q2 numbers.
This is the second time that the RBI, in its annual risk-based supervision, has observed divergences in both the banks’ NPA reporting.
In an interview to CNBC-TV18, Lalitabh Shrivastawa, AVP-BFSI at Sharekhan shared his views and readings on the numbers as well as on the stock.
Axis Bank posted disappointing Q2 numbers. In an interview to CNBC-TV18, Siddharth Purohit of SMC Institutional Equities gave his take on the stock.
Axis Bank reported a sharp rise in bad loans with slippages in the second quarter crossing Rs 8,900 crore. In an interview to CNBC-TV18, Jairam Sridharan, CFO of Axis Bank spoke about the results and his outlook for the bank.
According to average of estimates of analysts polled by CNBC-TV18, net interest income is seen rising 5 percent to Rs 4,741 crore from Rs Rs 4,513.9 crore year-on-year.
In an interview to CNBC-TV18, Manish Agarwalla, Co-Head of Research at PhillipCapital shared his views on readings of quarterly earnings from banking sector.
Axis Bank’s Q1 earnings largely met street expectations and asset quality remained largely stable. The big worry is the slippages from non-watchlist accounts. In an interview to CNBC-TV18, V Srinivasan, Deputy MD of Axis Bank spoke about the results and his outlook for the company.
The country’s third-largest private sector lender’s profit contracted 16 percent year-on-year to Rs 1,306 crore for the quarter ended June 2017.
Key things to watch out for would be asset quality movement. At the end of March 2017, total amount of loans under watchlist was Rs 11,232 crore (which accounts for 3 percent of total loan book).
Provisions may witness a slight uptick after the RBI's diktat in June. Positive trends on asset quality will, however, continue with the pace of slippages into NPAs declining for all banks.
Largely recommend buying the stock, but also highlight concerns on higher provisioning amount and margin pressure in a few cases.
Axis Bank ended a rather difficult year on a much better note which sets the stage for an improved fiscal year 2018, probably on the back of a system-wide resolution of some of the troubled assets.
In an interview to CNBC-TV18, Ravikant Bhat, Research Analyst at IDBI Capital shared his readings and outlook on Axis Bank's Q4 numbers.
The bank's gross addition to NPAs reduced to about Rs 4,800 crore in the fourth quarter from the peak of more than Rs 8,000 crore in the second quarter.