Axis' credit costs for the quarter ended March 31, 2020 are higher than anticipated, but some of it is precautionary
Historically, Q4 is the first time since March 2018 that the bank has dipped into losses of this magnitude because of the provisioning cost
the bank reported a 17 per cent increase in its operating profit at Rs 5,851 crore in the March quarter
The private lender's net interest income (NII) came in at Rs 6,808 crore for the period under review
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Analysts at MOFSL believe the Mumbai-based bank's credit cost may stay elevated led by higher slippages. Besides, asset quality could witness some pressure along with modest loan growth.
The bank's net interest income, which grew 15.15 per cent, met D-Street estimates. It's standalone NII stood at Rs 6,452.98 crore over an NII of Rs 5,603.7 crore clocked in Q3FY19.
On the asset quality front, the Mumbai-based bank reported gross non-performing assets at Rs 30,073 crore for the recently concluded quarter. This was up 3.4 per cent QoQ
The stock closed lower by 0.7 per cent at Rs 712.7 per share on BSE
During the quarter under review, the counter has outperformed the benchmark S&P BSE Sensex by surging 10.12 per cent, as against a 6.6 per cent gain in the index.
Better share of retail assets, improved underwriting standards were the positives of his first year as MD & CEO; asset quality not turning around briskly was a blip
The analysts would watch out for the management's commentary on "the stressed asset cropped up recently and delay or failure for resolution in the near term which could endure higher provisions
The Bank's slippages were Rs 4,798 crore during Q1FY20, compared to Rs 3,012 crore in Q4FY19 and Rs 4,337 crore in Q1FY19
The Bank's provisions increased to Rs 3,814.58 crore up from Rs 3,337.7 crore in the year ago period and Rs 2,711.43 crore in Q4FY19.
Stable credit cost guidance, retail loan growth positives