“Asset classification will occur in a day-to-time out-should be opponent, but classification can also be completed by the QUETET parameters, the CFO of the DPD-headed parameters are recovered, resulting in higher Dark for the quarter. ”
Sharma explained that under the previous norm, if a borrower with a ₹ 100 personal loan was five days past due and agreed to a settlement plan, such as three installments of ₹ 30 with a one-month moratorium, the account would be upgraded upon payments of the first installments. Under new technical behaviors, such accounts are no longer upgrading until the absolute settlement is made.
The technical effect is generally covered with cash credit, overdraft products, and accounts under one-time settlements (OTS).
This change affects the bank Kananfabilities MalisaReduced income after tax on ₹ 614 crore, returning assets (ROA) of 15 basic points, and return to equity (Roe) to 1.4 percentage points. A basic point is a hundred percentage points.
“Markets expect quality issues to resolve this quarter because it is a concern last year,” said Dharmesh Kant, chief of research in Chenamandalam. “In spite of attractive valuations compared to its peers, the guide for growth is not aggressive, carrying a more intensive quarter.
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Axis Bank has a 2.97% weight of good, behind HDFC Bank and Icici Bank, among borrowers. It ranks ninth among the main 10 stocks by weight of the maximum tracked gauge.
Besides 12 stocks of good bank index, 10 reduced and 2 advanced. The bank is well slid 1%, while the benchmark is beautifully reduced 0.6%.
Meanwhile, collections of Axis Bank Collections now conduct a qualification assessment of weighted accounts using credit bureau data, especially by mixing borrowers holding many loans.
Gross Slippages For quarter rose over 70% to 8,200 crore, from ₹ 4,793 crore at Q1fy25. After adjusting for the technical effect, the gross slippages stood at ₹ 5,491 crore. Of these, 75% from uninvited loans, while the remaining 25% comes from the agricultural sector. 80% of these accounts are sponsored by 100% security cover.
“It’s more bad numbers, and the management comment gives little confidence to expect a quick asset quality,” as PrAnav Gendlapalle, Prav’s praND in Bernstein. “Even after adjusting for an off policy changes, the axis bank performance of this quarter is much larger than peers, which weakened the case for any nearby revision.”
BrokerRage Nuvama, currently, the axis bank has lowered ‘hold’ and reduced target price of 1,204 from 1,410, quoted margin compression and higher Credit costs.
“We have lowered our credit growth estimates, while the small amount of credit is as an asset quality can be a nuvama of a nuvama of a nuvama of a nuvama of a nuvama NUVAMA ON A NUVAMA ON A NUVAMA ON A NUVAMA ON A NUVAMA ON A NUVAMA ON A NUVAMA A NUVAMA ON A NUVAMA ON A NUVAMA ON A NUVAMA You nuvama a nuvama of a nuvama in a note. “For a large banking franchise, the stock is selling a discount on its peers, which we expect that the gap is more likely to be given prone to asset earnings and quality.”
Maybe, Bernstein set a 12-month target price at ₹ 1,300, while Macquarie’s capital expects the stock to reach 1,450.
