About the Company:
With the span of 4,800 branches, 17,801 ATMs and 4,917 cash recyclers spread across the country and nine international branches, Axis Bank is the third largest private sector bank in India, headquartered in Mumbai. The bank has won ‘Innovation’ award at Finnoviti award and ‘Best Banking Technology’ Award at the IAMAI Digital Awards.
QoQ & YoYPerformance:
India’s third largest private bank has declared the results for the fourth quarter of financial year ending March 2020.
- Net Interest Income: NII is the difference between interest earned and interest expended that is the key factor for bank’s financial health status, which is increased 5.68% QoQ while on YoY basis, there is an increase of 18.99% growth in interest expended is grown more than interest earned.
- Net Profit After Tax: On QoQ basis, the bank has posted 166% down PAT while on YoY basis, there is an plunge of 174%.
- Provisions and Contingencies: Bank's provisions and contingencies are landed to Rs 783,424 Lakhs are increased by 124.66% QoQ and sharp increase in 193.95% YoY.
- Net NPA: Net NPA ratios are fell by 25.36% QoQ and 24.27% YoY.
- Dividend Payout:The Board of Directors has not recommended any dividend as the bank is going through a tough phase due to ongoing lockdown.
As per Lokesh Sethia, SEBI Registered Research Analyst, the recent lockdwn due to Coronavirus has forced the bank to convert major loans and advances in provisions and contingencies as 10-12% customers have opted for moratorium. The bank has not given moratrium to any Non-Banking Financial Corporation. Moreover, their asset quality has been deteriorated sharply. In comparison with the other private sectors banks, Axis Bank has not delivered any decent uptick in their Net Interest Income. The bank has delivered a poor growth in Other income, secondary revenue for the bank. We advise you to 'Avoid' the stock in current scenario.