InvestorQ : How were the Axis Bank results for the Dec-20 quarter?
Anu Biswas made post

How were the Axis Bank results for the Dec-20 quarter?

Ria Jain answered.
1 year ago

The results were not too encouraging for Axis Bank in the latest quarter due to pressure of bad loan provisions made. For the Dec-20 quarter, Axis Bank reported 29.15% fall in net profits at Rs.1,335 crore. For the same period, the total revenues were virtually flat at Rs.19,911 crore as the pressure of falling interest rates began to show.

Retail banking revenues were flat, unlike a lot of other banks that saw a positive growth in retail banking revenues. At the same time, corporate banking revenues as well as treasury income for the Dec-20 quarter were sharply down. This is again surprising since most private banks and even PSU banks have displayed a sharp spike in treasury income in the quarter.

PAT margins fell from 9.43% to 6.70% on a yoy basis and this was largely on account of the loan loss provisions of the bank that went up from Rs.3,487 crore to Rs.4,626 crore on a yoy basis. NIMs were not up to the mark at 3.59%; below the levels of most private banks. CASA ratio of Axis Bank for the quarter was up by 232 basis points at 42% of the deposit mix, which was perhaps the one good news.