Axis Bank shares were trading as the top gainers on BSE in an otherwise weak market on Wednesday after the private lender delivered 19.54% YoY growth in its Net Interest Income (NII) at Rs 6,985.31 crore in June 2020 from Rs 5,843.65 crore in June 2019. Bank's EPS fell to Rs 3.94 in June 2020 from Rs 5.29 in June 2019.
Lender's June-quarter net profit declined 19% to Rs 1,112 crore, from Rs 1,370 crore a year earlier.
Axis Bank share price opened with a gain of 6.01% today at Rs 473 on BSE and later rose 8.21% to an intraday high of Rs 482.85 against the last closing of Rs 446.20. The stock touched an intraday low of Rs 460.25.
The large cap share has climbed 9.48% in the last 3 days of consecutive gains. The stock trades higher than 5, 20, 50 and 100-day moving averages but lower than 200 day moving averages.
Axis Bank stock price has risen 10.6% in one week and 9.77% in one month. Market capitalisation of the lender stood at Rs 1.33 lakh crore as of today's session.
The lender had 9.7% of its loans under moratorium at the end of the April-June quarter. For the fourth quarter of the last fiscal, the lender had 25-28% of its loan book was under moratorium. Additional provisions held by the lender now stand at Rs 6,898 crore, well above RBI's norms. "The overall additional provisions held by the bank towards various contingencies together with the standard asset provisions, translate to a standard asset coverage of 1.56% at June 30, 2020," Axis Bank said.
Commenting on Q1 results of Axis Bank, Jaikishan Parmar, senior Equity Research Analyst, Angel Broking said," Axis Bank PAT declined 19% YoY, which is marginally below our estimates. NII grew 20% YoY primarily supported by the lower cost of funds. Other income declined 33% YoY, this is primarily owing to lower business activity. The cost to income declined 500bps to 39% sequentially. The big surprise is moratorium % to advance plunged from 25-28% mentioned in the Q4FY20 investor call to 9% in Q1FY21. The bank is continuously improving PCR which provides comfort on asset quality, considering all provisions (including specific plus standard plus additional plus COVID provisions) stands at 104% of GNPA at Q1FY21. Considering lower moratorium number, higher provision converges, a strong performance by subsidiary and lower valuation compared to the historical average will keep positive movement in stock price."