Axis Bank Q3

Axis Bank Q3 Results: What's Behind the Numbers?

Axis Bank surprises with a 4% rise in net profit, but disappoints on margins and NII. Is it time to buy or sell? Find out!

Axis Bank recently released its Q3 results, causing a stir in the financial world. While the net profit saw a 4% increase, the Net Interest Margin (NIM) and Net Interest Income (NII) fell short of expectations, leading to a plunge in the stock value. Analysts were taken aback by the bank's performance, especially with sluggish retail deposits and strained margins.

Despite the profit rise, the bank faces challenges with the asset quality, although there was a slight improvement in gross NPAs as a percentage of total advances in the December quarter. CFO Puneet Sharma highlighted the constraint on advances growth due to liquidity scenarios, hinting at potential hurdles in the short to medium term for loan growth.

On a positive note, Axis Bank's gross non-performing assets (GNPAs) decreased from 1.73% to 1.58% in the December quarter, signaling progress in managing asset quality. The bank's net NPAs remained stable at 0.36%. The market's reaction to the results leaves investors pondering whether to hold on, buy, or sell Axis Bank shares.