- 26 Jul 2022
- ICICIdirect Research
Strong operational performanceAXISBANK - 834 Change: -6.00 (-0.71 %)
News: NII up 21% YoY and 6.4% QoQ to Rs9384 crore on the back of 11 bps sequential improvement in NIM. Other income declined 11% YoY and 29% QoQ to Rs2999 crore, mainly due to treasury loss of Rs 667 crore. C/I ratio was up to 52.5% versus 50.4% QoQ. Provisions down 64% QoQ to Rs359 crore, as asset quality improved. Thus, PAT came in at Rs4125 crore (up 91% YoY) and was ahead of our estimates. Credit growth stood at 14% YoY at Rs7.01 lakh crore, wherein Retail and SME book posted a strong growth of 24.6% and 27.3% YoY while corporate book was down 4.7%. Deposit growth was at 12.6% YoY at Rs8.03 lakh crore, in which CASA growth was at 14% YoY. Asset quality improved as GNPA and NNPA ratio declined 6 bps and 9 bps QoQ to 2.76% and 0.64%, respectively.
Views: We believe strong capital position, adequate levels of provisioning and improving outlook on asset quality bodes well for the bank, while, gradual pick up in loan book to reflect positively on overall performance.