Axis Bank Result Analysis Q1 FY2021
It is
the 3rd largest private sector Indian bank which offers a wide range of
Financial Products. The bank has its HO situated at Mumbai (The Financial
Capital of India). It has 4800 Branches with 17801 ATMs. and 4917 cash
recyclers across the country (as on 31st March 2020) along with 9
International offices.
The bank has strong market position in most digital payment
products. It has is the fourth-largest bank in terms of credit cards
issuer, spending from debit cards at point of sales terminals and in
transactions through mobile, constituting market share of 8%, 12% and
14%,respectively. In terms of forex cards issued, Axis Bank stood at No. 1
position and has 38% market share.
Axis Bank has robust subsidiaries in financing, capital
market and asset management businesses. Axis Finance, in which the bank holds
100%stake,clocked 49% CAGR in loan book over FY 14-19 to INR 80.4 bn. Axis AMC
registered ~38% growth in AUMs over FY 15-19 to INR 845 bn.
Net Profit Down 19% On Higher Provisions
Net profit declined 19% year-on-year to Rs
1,112 crore in the quarter ended June, according to its filing. It
reported a net loss of Rs 1,388 crore in the previous quarter ended March.
The private sector lender made provisions worth Rs 4,416
crore compared with Rs 3,815 crore a year ago. It set aside Rs 773 crore worth
of additional provisions toward Covid-19-related impact on the balance sheet.
Asset quality improved with outstanding gross non-performing
assets at Rs 29,560 crore on June 30 compared with Rs 30,234 crore as on March
31.
Gross NPA fell to 4.72% from 4.86% in the preceding
three-month period
The bank reported fresh slippages worth Rs 2,218 crore
compared with Rs 4,798 crore a year earlier.
Total advances rose 17% year-on-year to Rs 5.79 lakh crore,
while total deposits stood at Rs 6.28 lakh crore, up 16% from a year earlier.
The growth in advances includes the amount allocated by the bank under the
targeted long-term repo operations during the April-June period.
Impact: Result
is in line with the expectation. Gross NPAs reduced in YoY. On Advances and
Deposit front both up in YoY.
Analysis: This
stock has shown good correction from its peak, buying can be initiated in this
stock between Rs 400 to Rs 430 range for price target of Rs 600 plus by end of
year.
Disclaimer: The information provided herein is based on publicly available information and other sources believed to be reliable, but involve uncertainties that could cause actual events to differ materially from those expressed or implied in such statements. The document is given for general and information purpose and is neither an investment advice nor an offer to sell nor a solicitation. While due care has been exercised while preparing this document, we do not warrant the completeness or accuracy of the information. We will not accept any liability arising from the use of this material. The recipient of this material should rely on their investigations and take their own professional advice.
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