Axis Bank Q1 Review - Loan Growth Muted; Lower Provisions Drive Earnings Beat: Motilal Oswal

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Axis Bank Ltd. reported a profit after tax of Rs 41.2 billion (up 91% YoY, 20% beat), driven largely by lower provisions, which fell 89% YoY, while net interest income/pre-provision operating profit stood in line. Opex remains elevated as the bank is investing in the business and technology. Business growth was muted, with loans and deposits down sequentially. The corporate and small and medium enterprise book saw a QoQ decline, while the retail segment saw a growth of 3% QoQ. Fresh slippages fell to Rs 36.8 billion, which, coupled with healthy recoveries and upgrades, enabled an improvement in asset quality ratios.The restructuring book remains controlled at 0.45%, which, along with an additional provision buffer, should rein in credit cost. We expect Axis Bank to deliver a return on asset/return on equity of 1.6%/16.7% in FY24E..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Axis Bank Q1 Review - Loan Growth Muted; Lower Provisions Drive Earnings Beat: Motilal Oswal

Axis Bank Q1 Review - Loan Growth Muted; Lower Provisions Drive Earnings Beat: Motilal Oswal

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