Axis Bank ends 3% up on stable asset quality, lower stressed addition in Q4

MUMBAI: Axis Bank gained as much as 4.79 per cent in trade as its asset quality remained stable in Jan-March quarter and stressed asset addition have reduced compared to management guidance.

The stock ended at Rs 552.90, up 3.30 per cent on the BSE.

Axis Bank reported a net profit of Rs 2,180 crore, up 18.34 per cent, from Rs 1,842 crore in the corresponding quarter last fiscal. Net interest income grew to Rs 3800 crore, up 20 per cent, from Rs 3166 crore, in year-ago period.

The bank’s gross and net NPA in Q4 remained unchanged at 1.34 per cent and 0.44 per cent respectively, QoQ.

Its stressed asset addition stood at Rs 2150 crore.

"There were expectations that this quarter would see more slippages. The lack of it is a positive. Anyways, Axis Bank is considered better pick in current environment and better performance on asset quality front will further add to the positivity," said Kajal Gandhi, analyst, ICICIDirect.

"Don’t think will need any revisions on estimates front. We have buy rating on the stock with target price of Rs 690," Gandhi added.