InvestorQ : Is Axis Bank a stock worth buying after the latest results announced for the December quarter?
Moii Chavate made post

Is Axis Bank a stock worth buying after the latest results announced for the December quarter?

Answer
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Sam Eswaran answered.
8 months ago


Axis Bank net profit rose 4.5% to Rs.1,681 crore backed by higher net interest income (NII). Net profit was sharply lower than the consensus estimates. However, the NII was higher by 15.16% at Rs.6,453 crore Gross non-performing assets (NPAs), as a percentage of total advances, were almost flat at 5% in the December quarter on a QOQ basis but sharply lower on a YOY basis compared to 5.75% last year.

One concern was that provisions increased 13.6% during the quarter to Rs.3,471 crore on a YOY basis. The net NPAs were higher by 10 bps at 2.09%, broadly indicating that the NPA cycle was still some way away from bottoming out. You can expect the stock to remain under pressure due to weak profitability and the risk of burgeoning bad assets.