What should investors do with Axis Bank after Q3 earnings; buy, sell or hold?

What should investors do with Axis Bank after Q3 earnings; buy, sell or hold?

Gross non-performing asset ratio slipped 36 basis points sequentially to 3.17 percent. Net NPA ratio fell 17 basis points to 0.91 percent.





January 25, 2022 / 09:35 AM IST





Axis Bank share price added two percent in early trade a day after the company announced its December quarter earnings.

The bank reported a 224 percent year-on-year rise in its net profit at Rs 3,614 crore.

The private sector lender also reported a 17 percent growth in net interest income to Rs 8,653 crore.

The bank posted a strong performance on the asset quality front as gross non-performing asset ratio slipped 36 basis points sequentially to 3.17 percent. Net NPA ratio fell 17 basis points on-quarter to 0.91 percent.

Axis Bank said its net loan slippage ratio declined 38 basis points on-quarter to 0.06 percent. Specific loan-loss provisions declined to Rs, 790 crore from Rs 927 crore in the previous quarter.

Fee income grew 15 percent on year to Rs  3,344 crore whereas trading profits and miscellaneous income stood at Rs 367 crore and Rs 130 crore, respectively.

Total deposits grew 20 percent on year to Rs 7.7 lakh crore with current account-savings account deposits rising 22 percent. The CASA ratio improved 189 basis