Axis Bank Ltd's Q3 FY17 standalone results disappoint: net profit declines 73.33% yoy to Rs 580 crore: Misses Estimates

India Infoline Research Team | January 19, 2017 17:01 IST

Axis Banks’ Q3 FY17 standalone NII for the period came in at Rs. 4334 crores showing a 4.1% yoy increase. NIM for the quarter stood at 3.4%.

Axis Bank Ltd Q3FY17

Standalone Results Q3FY17: (Rs. in crore)

Q3FY17 YoY (%)
NII 4,334 4.1
NPA (%) 5.2 350
Provisions 3,796 432.4
Net Profit (adjusted) 580 [73.3]
***NPA change is bps

Axis Bank, India's third largest private sector bank, reported its quarterly result post market hours today.

The Q3FY17 results registered a miss on consensus street estimates. NII came in 5.1% below the estimated figure of Rs. 4569 crores. Also, net profit was significantly lower (27.7%) than the streets estimate of Rs. 802 crores.

Axis Banks’ Q3 FY17 standalone NII for the period came in at Rs. 4334 crores showing a 4.1% yoy increase. NIM for the quarter stood at 3.4%.

Gross NPA’s for the period recorded a 257.6% yoy jump to Rs. 20467 crores leading to a 354 bps worsening of asset quality. Thereby, Gross NPA as a percentage of Gross Advances stood at 5.2%. Watch List of loans reduced to 2.8% of customer assets in December 2016, from 3.5% in September 2016 and 6.2% at the beginning of the current financial year.

Provisions for bad loans increased 432.4% yoy to Rs. 3796 crores.

The higher provisioning resulted in a large reduction in net profit. Net profit for the quarter dropped 73.3% yoy to Rs. 580 crores.

During the quarter net advances grew 10% yoy, led by Retail, which grew 19% yoy. CASA grew 21% yoy and constituted 48% of total deposits as Q3FY17 end. The Bank also further strengthened its capital position during the quarter, under Basel III, Total CAR & Tier I CAR (including the net profit for 9MFY17) stood at 16.59% and 12.99% respectively.


Technical View:

Axis Bank Ltd ended at Rs. 483.7, down by 4.65 points or 0.95% from its previous closing of Rs. 488.35 on the BSE.
The scrip opened at Rs. 486 and touched a high and low of Rs. 487.7 and Rs. 479.8 respectively. A total of 8111341(NSE+BSE) shares were traded on the counter. The stock traded below its 200 DMA.


***Note: This is a NSE Chart

 

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