Axis Bank Q4 Review - Asset Quality Outlook Improving; Earnings Set To Gain Momentum: Motilal Oswal
An Axis Bank branch in Mumbai. (Photo: BloombergQuint)

Axis Bank Q4 Review - Asset Quality Outlook Improving; Earnings Set To Gain Momentum: Motilal Oswal

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Axis Bank Ltd. reported a strong quarter, with profit after tax above our estimates, aided by lower provisions.

Business growth was strong across segments, with retail disbursements at an all-time high.

On the asset quality front, the slippage trend subsided sequentially (Rs 52.8 billion versus Rs 67.4 billion in Q3) and total restructuring stood at 0.3% of loans.

Also, the total funded and non-funded book declined to 2.0% of loans (versus 2.4% in Q3 FY21).

Also, the bank has ~72% coverage on gross non-performing loan and additionally holds a provision buffer of 2% (including standard provisions) to protect the balance sheet against any potential stress.

Click on the attachment to read the full report:

Motilal Oswal Axis Bank Q4FY21 Result Review.pdf

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