Axis Bank Shares Reached a New Record High After a Strong Q2 Performance

Axis Bank, the institution reported a 70% year-over-year (YoY) increase in net income to Rs 5,330 crores for the financial quarter Sept 2022, stocks of the lending institution Axis Bank NSE 9.03% surged 6.5% to Rs 879.95, their milestone high, in Friday’s intraday trading on BSE.

The company’s net income was higher than the Rs 4,400 crore poll result from ET Now. Axis Company’s net interest revenue increased by 31% over the past year to Rs 10,360 crore. Lower allowances were a contributing factor in the bottom line’s excellent rise.

Provisions decreased from Rs 1,735 crore to Rs 550 crore throughout the quarter. The asset class quality continued to rise. In the 2nd period of FY23, the net non-performing asset ratio decreased to 2.5% versus 2.76% the prior period and 3.53% the previous year.

The NPA Ratio of Axis Bank

At 0.51%, the gross non-performing asset ratio was fewer than it was three months ago and one year ago (both 0.64% and 1.08%). The private industry bank’s capital adequacy decreased from 19.23% a year ago and 17.28% a quarter ago to 16.52% today.

Axis Bank waived off Covid-19-related debts of Rs. 46.14 crores as of Sep 30. From April through September, loans relating to Covid totaling Rs 652.6 crore turned into non-performing assets or also called NPA.

Better Performance in Stock Value

The net interest income increased to 3.96% by 57 basis points annually and 36 bps consecutively. The fee revenue saw a 20% increase. Bank retail loans rose by 22% year over year, whereas those made to small and medium-sized businesses jumped by 28%.

At 10.26 am, the stock traded 5.53% higher than its recent trading day’s value of Rs 826.20 per share, at Rs 871.90. The equity has increased by almost 9% in the past six months and by approximately 25% year to date.