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Axis Bank Q3 Results Review - Placed As The Top Pick In May 2022, Thesis Remains Intact: Yes Securities

Axis Bank's conservative approach to asset quality recognition continued even as outcomes remained under control in absolute sense

<div class="paragraphs"><p>Axis House lobby. (Source: Bank website)</p></div>
Axis House lobby. (Source: Bank website)

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Yes Securities Report

Of the gross slippages during the quarter, Rs 4.10 billion were non-recurring or prudent items. Axis Bank Ltd.'s provisions for the quarter were Rs 14.38 billion, up by 161% QoQ and 7.7% YoY, which translated to a credit cost of 65 basis points on annualised basis. The provisions contained non-recurring provisions worth Rs 3.4 illiobn, which implies that underlying credit costs were 53 bps on annualised basis. The total non-non performing asset provisions amount to Rs 116.33 billion and all provisions taken together provide a 139% coverage on gross non performing asset.

The share of loans and investment in total assets was 87%, up 300 bps YoY. The Rural Infrastructure Development Fund book has declined as a share of assets to 2.7% as of December 2022 from 3.8% a year ago.

The share of Indian rupee-denominated loans was 93.3% of total advances, up 290 bps YoY. Further, the share of retail and CBG loans was 67% of total advances, up 195 bps YoY. Also, the share of mid corporate loans, small and medium enterprise and small business banking is 20%, which is up about 510 bps in two years.

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Yes Securities Axis Bank - Q3FY23 Result Report.pdf
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