AXIS Bank Ltd.
BSE Code/ NSE: 532215/ AXISBANK
Face Value: Rs2
CMP: Rs 610
52 Weeks H/L (Rs): 676.90/ 477.50
Market Cap Rs (crore): 1,62,096
Axis Bank is the third largest private sector bank in India. The Bank offers the entire spectrum of financial services to customers covering Large and Mid-Corporates, MSMEs, Agriculture and Retail Businesses. With its 3,779 domestic branches (including extension counters) and 12,834 ATMs across the country as on 30th June 2018, the network of Axis Bank spreads across 2,211 cities and towns, enabling the Bank to reach out to a large cross-section of customers with an array of products and services. The board has appointed Amitabh Chaudhry as Managing Director of the Bank.
During Q2FY19, its NII grew by 15% to Rs 5232 crore while its PAT zoomed 83% to Rs 790 crore against Rs 432 crore. NIM for Q2FY19 was 3.36%, up from 3.29% in Q1. Total provisions stood at Rs 2927 crore; de-grew 7% YOY. Slippages declined 69% YOY to Rs 2777 crore. The Bank’s GNPA and NNPA stood at 5.96% and 2.54%, down from 6.52% and 3.09% QOQ. Provision Coverage Ratio of the Bank has improved to 73% from 69%. Domestic loan growth during the quarter stood at 15% YOY driven by Retail and SME segments. The NII grew by 14% at Rs 10399 crore during H1FY19 as against Rs 9156 crore in the corresponding period last year. The Bank’s Balance Sheet grew 15% YOY and stood at Rs 730546 crore as on 30th September 2018. We are expecting strong performance to continue in next 4-12 quarters and asset quality remains strong in future. We recommend buying this stock in staggered manner for 12 to 15 months investment horizon.