Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Axis Bank
For 2QFY2012, Axis Bank reported healthy 25.2% yoy growth in its net profit to
`920cr, above our estimates and in-line with consensus estimates. A sharp uptick
in NIM and healthy fee income growth more than compensated the higher
provisioning expenses.
Business growth momentum for the bank picked up during the quarter, with
advances growing by 6.2% qoq (up 26.7% yoy) and deposits rising by 5.9% qoq
(up 23.9% yoy). CASA deposits grew at a healthy pace of 26.0% yoy (10.4% qoq),
leading to a rise in CASA ratio to 42.2% from 40.5% in 1QFY2012. Reported NIM
rebounded sharply to 3.8% (up 50bp qoq) on the back of stronger build-up in
CASA deposits, stable funding rates and a pick-up in yield on advances. The uptick
in NIM coupled with healthy business growth led to healthy 24.3% yoy (16.4% qoq)
growth in NII, which came in well above our estimates. Asset quality showed initial
signs of stress with annualized slippage ratio rising to 1.4% from 0.8% in
1QFY2012 and advances restructured during the quarter rising to `312cr from
`107cr restructured in 1QFY2012. Gross and net NPA ratios were stable
sequentially; however, provision coverage ratio including technical write-offs came
off slightly to 77.7% (80.0% in 1QFY2012). The bank added 35 branches during
the quarter. Tier-I CAR including profits declined to 9.3% from 9.8% in 1QFY2012
due to faster business growth.
The bank’s substantial branch expansion over the past 2-3 years (407 in FY2011
itself, a 41.4% yoy increase) is expected to yield meaningful results over FY2012-
13, leading to more CASA market share gains. We remain positive on the bank,
owing to its attractive CASA franchise, rapid branch expansion, multiple sources of
sustainable fee income, strong growth outlook and A-list management. The stock
is currently trading at 1.8x FY2013E ABV. We maintain our Buy recommendation
on the stock while keeping the target price under review.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Axis Bank
For 2QFY2012, Axis Bank reported healthy 25.2% yoy growth in its net profit to
`920cr, above our estimates and in-line with consensus estimates. A sharp uptick
in NIM and healthy fee income growth more than compensated the higher
provisioning expenses.
Business growth momentum for the bank picked up during the quarter, with
advances growing by 6.2% qoq (up 26.7% yoy) and deposits rising by 5.9% qoq
(up 23.9% yoy). CASA deposits grew at a healthy pace of 26.0% yoy (10.4% qoq),
leading to a rise in CASA ratio to 42.2% from 40.5% in 1QFY2012. Reported NIM
rebounded sharply to 3.8% (up 50bp qoq) on the back of stronger build-up in
CASA deposits, stable funding rates and a pick-up in yield on advances. The uptick
in NIM coupled with healthy business growth led to healthy 24.3% yoy (16.4% qoq)
growth in NII, which came in well above our estimates. Asset quality showed initial
signs of stress with annualized slippage ratio rising to 1.4% from 0.8% in
1QFY2012 and advances restructured during the quarter rising to `312cr from
`107cr restructured in 1QFY2012. Gross and net NPA ratios were stable
sequentially; however, provision coverage ratio including technical write-offs came
off slightly to 77.7% (80.0% in 1QFY2012). The bank added 35 branches during
the quarter. Tier-I CAR including profits declined to 9.3% from 9.8% in 1QFY2012
due to faster business growth.
The bank’s substantial branch expansion over the past 2-3 years (407 in FY2011
itself, a 41.4% yoy increase) is expected to yield meaningful results over FY2012-
13, leading to more CASA market share gains. We remain positive on the bank,
owing to its attractive CASA franchise, rapid branch expansion, multiple sources of
sustainable fee income, strong growth outlook and A-list management. The stock
is currently trading at 1.8x FY2013E ABV. We maintain our Buy recommendation
on the stock while keeping the target price under review.
No comments:
Post a Comment