Q3 Numbers Dragged Axis Bank in the Blues

Post the Q3 numbers, Axis Bank share price fell 5 per cent at Rs. 456.55.

The private sector lender Axis Bank declared that its net profit for December quarter degrew 73 per cent to Rs 579.57 crore, owing to the rise in fresh slippages.  The lender had registered a net profit of Rs 2,175.30 crore for the year-ago quarter. The  fresh slippages for the quarter stood at Rs 4,560 crore as compared with Rs 2,082 crore in the year-ago quarter.

It also informed that the gross non-performing assets (NPAs) for the quarter rose to 5.22 per cent of total advances as of December 31 from 4.17 per cent reported logged for the September quarter. The bank’s provision coverage, as a proportion of gross NPAs which includes prudential write-offs, improved to 64 per cent from 60 per cent as on September 30.

As on December 31, fund based outstanding on the bank’s watch list slipped 20 per cent over the previous quarter and stood at Rs 11,091 crore. The watch list decreased to 2.8 per cent of customer assets in December quarter, from 3.5 per cent in the second quarter and 6.2 per cent as on March 31.

Net interest income (NII), the difference between interest earned from lending activities and interest paid to depositors, increased 4 per cent for the quarter to Rs 4,334 crore. Meanwhile, the bank reported net interest margin (NIM) of 3.43 per cent for the December quarter.

Axis Bank share price rallied nearly 10 per cent since 10 January. In intraday trade, the stock touched a high and low of Rs 461.40 and Rs. 452.65. The stock is trading at Rs. 456.55. Till now, around 1,04,38,073 shares are traded on the counter , showing a 1.29 times spurt in its volume.

For further details on the stock, refer to Axis Bank share price history.

The net profit of Axis bank is seen dropping in Q2

All eyes are now set on the Q2FY17 results of the country's third largest private sector lender. The market is expecting Axis Bank to report a 14.6 percent decline in second-quarter profit at Rs 1,636.7 crore as against year-ago period, according to the polls of analysts.

The anticipation of the fall in the net profit of Axis Bank in the second Quarter has not yet impacted Axis Bank share price, which continues to trade at the greener side of the market.

Provisions will be closely monitored for profit growth. The difference between interest earned and interest expended, i.e. the Net interest income, may go up 12.3 per cent year-on-year to Rs 4,562.4 crore on strong loan growth that is likely to be around 18-19 per cent in the second quarter of this financial year.

At 11:00 AM, Axis Bank share price is trading at Rs. 525.55 with 0.77% rise as compared to the 0.37% decline in the Benchmark Index Nifty.

Main things to watch out for would be asset quality movement, slippages from watch list and net interest margin. The total amount of loans in the watch list were Rs 22,857 crores, which is 6.6 per cent of the loan book and slippages from watch list were Rs 2,680 crore in the first quarter of this financial year.

Today, Axis Bank share price opened at Rs. 520.90, lower than its previous close of Rs. 521.55. The stock traded at the intraday high of Rs. 527.80 and the low of 520.10.

Analysts say if gross non-performing assets slips below 2.75 per cent, which was at 2.54 per cent in the first quarter, net interest margin at or above 3.8 per cent, which was 3.79 per cent in the first quarter, then that, will be positive.

Axis Bank is the top 500 performing stock for the quarter as identified by the Dynamic Levels. For the support and resistance levels of the stock, visit Axis Bank share price forecast page of Dynamic Levels website.