Axis Bank Q4 Review - Asset Quality, Growth Metrics Surprise Positively: Dolat Capital
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Dolat Capital Report
Axis Bank Ltd. reported net interest income and pre-provision operating profit growth of 11% and 17% year-on-year respectively.
The miss in net interest income estimates was compensated by higher fee and treasury gains.
Margins were stable quarter-on-quarter at 3.56% despite improving cost of funds.
Asset quality metrics improved sequentially with 85 basis points decline in gross non-performing asset ratio to 3.7%, contained slippages at 3.6% for the quarter, decline in ‘BB and below’ book by 40 bps QoQ to 2% of advances, and restructured book at 0.3% of loans (against 0.5% for other large private peers).
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