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Axis Bank shares rise on Q2 profit of Rs 1,683 crore; CLSA retains buy

The private sector lender on October 28 reported a net profit of Rs 1,683 crore for Q2FY21 as against a net loss of Rs 112 crore in Q2FY20. The bank’s operating profit for the quarter grew 16 percent YoY and 18 percent QoQ to Rs 6,898 crore.
Oct 29, 2020 / 09:57 AM IST

Axis Bank share price gained a percent in the morning session on October 29 after the company declared its September quarter results.

The private sector lender on October 28 reported a net profit of Rs 1,683 crore for Q2 FY21 as against a net loss of Rs 112 crore in Q2 FY20. The bank’s operating profit for the quarter grew 16 percent year-on-year (YoY) and 18 percent quarter-on-quarter (QoQ) to Rs 6,898 crore.

The bank said its net interest income (NII) grew 20 percent YoY to Rs 7,326 crore in Q2 FY21 from Rs 6,102 crore in Q2 FY20. The net interest margin (NIM) for Q2 FY21 was 3.58 percent as against 3.51 percent for Q2 FY20.

The stock was trading at Rs 512.70, up Rs 7.85, or 1.55 percent at 09:38 hours. It has touched an intraday high of Rs 513.20 and an intraday low of Rs 495.70.

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Fee income grew 67 percent QoQ and 4 percent YoY, while retail fee income grew 82 percent QoQ and 0.5 percent YoY. Corporate and commercial banking fees grew 46 percent QoQ and 10 percent YoY. The bank said its total deposits grew 13 percent YoY on a quarterly average basis.

The bank's slippages from the loan book stood at Rs 741 crore. Corporate slippage stood at Rs 183 crore while recoveries and upgrades stood at Rs 1,848 crore.

Global research firm CLSA has maintained buy on the stock and has raised target from Rs 600 to Rs 700 per share. Asset quality commentary indicates COVID-related stress is manageable, Its non-NPA provisions was at 1.8 percent of loans and should cover majority of stress. The firm has increased its FY21/22/23 estimates by 24/22/8 percent, according to a CNBC-TV18 report.

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According to Moneycontrol SWOT Analysis powered by Trendlyne, the stock is showing strong momentum: Price above short, medium and long term moving averages. FII / FPI or Institutions increasing their shareholding.

Moneycontrol technical rating is very bullish with moving averages and technical indicators being bullish.

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Moneycontrol News
first published: Oct 29, 2020 09:57 am
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