InvestorQ : Can I have your quick take on the quarterly results of Axis Bank and Kotak Bank announced on Tuesday 26-Oct?
swati Bakhda made post

Can I have your quick take on the quarterly results of Axis Bank and Kotak Bank announced on Tuesday 26-Oct?

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Sam Eswaran answered.
1 month ago
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Let me start with Axis Bank first. It reported 4.17% rise in revenues Rs.20,967 crore for the Sep-21 quarter. Net profit surged by 85% to a record Rs.3,388 crore on 60% fall in provisions. In terms of revenue mix, treasury income was up 4% yoy while corporate banking revenues were lower by 1.12%. Retail banking revenues surged 6.7% yoy. However, retail segment EBIT halved on spike in bad assets.

Retail loan disbursements were up 54% and fee income was up 17% in the quarter. There was good news on the cost front with credit costs at just 0.54% and the net slippages in the quarter at a manageable 0.46%. CASA deposits were up 200 bps at 42% of overall deposits. Net interest income or NII for the quarter grew 8% while the net interest margins or NIM stood at 3.9%. Gross NPAs and net NPAs fell sharply during the quarter on yoy basis.

Let me now turn to Kotak Bank. Revenues were up 13.24% at Rs.15,342 crore in the Sep-21 quarter. Treasury and corporate banking revenues were almost flat while retail banking revenues were up 8%. Insurance provided the big boost growing 36% to Rs.5,083 crore. Kotak Bank also saw traction in its transaction advisory, broking and its asset management business. EBIT contributions of treasury and corporate banking were higher while the EBIT of retail business fell 96% due to heightened asset stress.

Net Interest income or NII for the quarter was up 3% at Rs.4,021 crore with the NIMs at a healthy 4.45%. There was good traction in customers assets growing 17% during the quarter at Rs.256,353 crore. The already healthy CASA share increased another 350 basis points to 60.6%. However, there was pain on asset quality front with gross NPAs up 61 bps and net NPAs up 39 bps.

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