Axis Bank Q2: Following the quarterly results, brokerage houses are bullish on Axis Bank. Most brokerage houses have increased the target by recommending investment in bank shares. Private sector lender Axis Bank has performed well in the second quarter of FY 2021. Axis Bank has come in profit from Ghatse during this time and has a net profit of about Rs 1683 crore. The bank had a loss of Rs 112 crore in this period last year. If you look at the investment target of different brokerage houses, then in the coming days, the stock can get up to 38 percent returns.
Profit increases due to increase in size of assets
This profit was due to the increase in assets of Axis Bank. During the second quarter, the bank put assets worth Rs 4,000 crore into the ‘BB & Below’ category. In this case, the size of the assets included in this category has been Rs 14,800 crore. Whereas during this period, the bank’s expenditure has increased by 30 percent to Rs 4,850.65 crore. The special thing is that despite increasing the provisioning for the trapped loans, the bank remained profitable.
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Great growth in net interest income
Brokerage house Motilal Oswal says that there has been a tremendous growth in the net interest income of the bank. Net interest income grew 20 percent in the second quarter and the bank received 7,326.07 crore after paying interest. Net interest margin has increased to 3.58 percent. According to the brokerage, the retail fee income of the bank has been healthy. The bank’s outlook is strengthened by strong balance sheets with control opex, retail growth, loan growth, higher disbursement and SME portfolio.
Improvement in every segment
Brokerage house MK Global says that the bank’s profit has increased due to better NIM. Loan growth has been 11 percent on an annual basis. Retail growth has been 12 per cent on an annual basis and 2 per cent on a quarterly basis. The bank has not given any numerical guidance, but has shown good growth in every segment. Retail and corporate loan growth has improved. The bank has also improved its asset quality during this period. The bank’s gross NPA stood at 4.18 per cent in the quarter, compared to 4.72 per cent in the first quarter. In rupee, it came down to Rs 26,831.64 crore, which was Rs 29,560 crore in the June quarter.
How much return can I get?
MK Global
Rating: Buy
Target: Rs 620
Current Price: Rs 505
Return: 23 percent
Motilal Oswal
Rating: Buy
Target: Rs 650
Current Price: Rs 505
Return: 28 percent
CLSA
Rating: Buy
Target: Rs 700
Current Price: Rs 505
Return: 38 percent
JP Morgan
Rating: Overweight
Target: Rs 600
Current Price: Rs 505
Return: 18 percent
Jefferies
Rating: Buy
Target: Rs 610
Current Price: Rs 505
Return: 20 percent
Note: We have given information here based on the quarterly results of Axis Bank and the report of the brokerage house. Considering the risk of the market, consult the experts at your level before investing.
