ICICI Direct: Axis Bank’s Adequate Provisions Offer Comfort On Q2 Earnings Trend
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ICICI Direct Report
In Q2 FY21, Axis Bank Ltd. reported net interest income growth of 20% YoY to Rs 7326 crore.
Strong NII growth was driven by expansion in net interest margin, which jumped 7 basis points YoY, 18 bps QoQ to 3.58%.
Sequential 18 bps expansion in NIM was due to 3 bps from capital raise, 5 bps from lower interest reversals and 10 bps from better liquidity management.
From Q1 FY21, the bank is adding some amount in NII reserve. As a result, NIM was negatively impacted by 5 bps.
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