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