Slippages from non watch list goes up, but core operations remains fairly decent for Axis Bank: Angel Broking

Views of Mr. Siddharth Purohit (Sr. Equity Research Analyst- Banking, Angel Broking):

"Axis Bank's headline numbers remained in line with expectations. As expected retail loans continued to drive the growth during the quarter as well, up 22.4%. Growth in Corporate loans continued to be muted up by only 2.6% YoY. Asset quality of the bank remained largely stable due to lower slippages at Rs 3519 cr vs Rs 4811 cr. Slippages from the non watch list portfolio has gone up during the quarter. However, part of incremental retail slippages came from the agri related portfolio, which can be considered one off and hence we don't expect material change in the credit cost. Though slippages outside watch list can be a cause of concern the management has re-iterated its stand that credit cost will not exceed 225 bps for FY18 and that gives a confidence that large part of the trouble for Axis Bank might be behind now. The core operations of the bank remain fairly decent and hence we have an ACCUMULATE rating on the stock."

Shares of AXIS BANK LTD. was last trading in BSE at Rs.528.85 as compared to the previous close of Rs. 544.65. The total number of shares traded during the day was 775208 in over 10346 trades.

The stock hit an intraday high of Rs. 543.85 and intraday low of 525. The net turnover during the day was Rs. 412184110.

Source : Equity Bulls

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