1. Axis Bank shares gain over 6% on Q3 results

Axis Bank shares gain over 6% on Q3 results

Axis Bank shares gained as much as 6.11 per cent in the early trade on Thursday after the bank registered a rise of 14.50 per cent yoy in its net profit at Rs 2,175.30 crore for third quarter ended December 2015.

By: | New Delhi | Updated: January 21, 2016 10:46 AM
Axis Bank shares, Sensex

Axis Bank shares gained as much as 6.11 per cent in the early trade on Thursday after the bank registered a rise of 14.50 per cent yoy in its net profit at Rs 2,175.30 crore for third quarter ended December 2015. (Photo: Reuters)

Axis Bank shares gained as much as 6.11 per cent in the early trade on Thursday after the bank registered a rise of 14.50 per cent in its net profit at Rs 2,175.30 crore for third quarter ended December 2015 as compared to Rs 1,899.76 crore for the same quarter in the previous year.

At 10.03 am, Axis Bank shares were trading 4.88 per cent up at Rs 407.60. The scrip opened at Rs 398.30 and had touched a high and low of Rs 412.40 and Rs 398.30, respectively, in trade so far. Sensex was up 0.45 per cent at 24,171.30.

Total income of the bank increased by 14.66 per cent to Rs 12,531.11 crore for Q3FY16 as compared Rs 10,928.81 crore in the same quarter last year.

However, asset quality of Axis Bank deteriorated with percentage of gross non-performing assets (NPAs) rising to 1.68 per cent of gross advances as against 1.34 per cent in the same quarter of the previous fiscal.

Its net non-performing assets also jumped to 0.75 per cent, from the earlier 0.44 per cent.

KR Choksey Shares and Securities in a research note said, “While Q3FY16 stood a mixed bag performance for Axis bank with steady operating profits but disappointment on asset quality on expected lines, the bank’s adequate disclosures, clear roadmap ahead in terms of business and credit quality and the respite emerging from the bank’s stressed asset recognition being in-line with the RBI expectations reinforces our confidence in the business dynamics forward. While the asset quality worries are not yet behind, the strong operating metrics, stressed asset resolution on expected lines and robust return ratios prompt us to upgrade the stock to ‘Buy’.”

The promoters holding in the company stood at 29.54 per cent while institutions and non-institutions held 56.66 per cent and 9.93 per cent respectively.

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