Views on Axis Bank 4QFY2016 Results: Angel Broking

Views of Mr. Siddharth Purohit (Sr. Equity Research Analyst- Banking, Angel Broking) on Axis Bank 4QFY2016 Results:

"Axis Bank has come out with mixed set of results. While NII growth of 19.8% to INR 4553 cr was in line with our expectations, higher than expected provisions were the reasons for a marginal 1.2% decline in PAT at INR 2154 cr. Other income remained flat YoY. As indicated by the management in the Q3FY16 concall the asset quality of the bank remained stable with GNPAs at 1.67% vs 1.68% QoQ while NPAs improved to 0.70% from 0.75% QoQ. The bank had utilised large part of the contingency provisions in the previous quarters and hence created a contingency provisions of INR 300 cr as a result there was a sharp spike in provisions for the quarter.

On business front the bank delivered decent numbers with loan book growing by 20.5%. Retail loans continued to grow strong up 24% YoY. At the CMP the stock is trading at 1.9x its FY17 E Book Value. We maintain our ACCUMULATE rating on the stock."

Shares of AXIS BANK LTD. was last trading in BSE at Rs.472.25 as compared to the previous close of Rs. 468.25. The total number of shares traded during the day was 530379 in over 11107 trades.

The stock hit an intraday high of Rs. 477.5 and intraday low of 465. The net turnover during the day was Rs. 250483296.

Source : Equity Bulls

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