HDFC Securities: Axis Bank’s Provision Buffers Strengthened Further
A customer exits an Axis Bank branch in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

HDFC Securities: Axis Bank’s Provision Buffers Strengthened Further

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.

HDFC Securities Report

Axis Bank Ltd. saw strong operating profit growth, led by robust net interest income growth, a sequential rebound in core fees, and controlled operating costs.

Even as we expect the bank to register a rise in gross non-performing assets in FY21E, it has already built significant provision buffers, which will limit the need for incremental provisioning.

Further, strength on the funding side (capital adequacy ratio and deposit traction) will allow the bank to capture resurgent credit growth.

Click on the attachment to read the full report:

HDFC Securities Axis Bank Q2FY21 Results Update.pdf


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