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Axis Bank Q4 Review - Cutting Earnings Due To Higher Opex: Nirmal Bang

Axis Bank Q4 Review - Cutting Earnings Due To Higher Opex: Nirmal Bang

<div class="paragraphs"><p>An employee at an Axis Bank Ltd. branch in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)</p></div>
An employee at an Axis Bank Ltd. branch in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

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.

Nirmal Bang Report

Axis Bank Ltd.’s Q4 FY22 operating profit came under pressure due to 7% YoY growth in net revenue while investments in growth and technology continued to keep opex elevated.

Net profit growth was 53.8% YoY, led by 70% YoY drop in provisioning. Loans increased by 15% YoY with retail growing by 21% YoY.

In wholesale segment, commercial banking and mid-corporates were the focus segments. Net interest margin contracted by 4 basis points QoQ as yields declined and cost of deposits increased by 5 bps QoQ.

Axis Bank's management remains optimistic with respect to net interest margin trajectory going ahead on the back of improving balance sheet composition, faster growth in high-margin unsecured loans and run-down of the rural infrastructure development fund bonds.

Asset quality improved and the credit cost is expected to trend down.

Click on the attachment to read the full report:

Nirmal Bang Axis Bank-Q4FY22 Result Update-29 April 2022.pdf

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