Axis Bank and Kotak Mahindra Bank – Quarterly Results

Axis bank kotak bank results

Axis Bank Ltd reported 4.73% rise in total revenues at Rs.20,285 crore in Jun-21 quarter. Net profits were up 114.36% at Rs.2,357 crore. Net interest income grew 11% to Rs.7,760 crore while the Net Interest Margins (NIM) improved by 6 bps to 3.46%. Fee income provided the big boost with 63% yoy growth.

Here is a quick financial summary of Q1

Rs in Crore

Jun-21

Jun-20

YOY

Mar-21

QOQ

Total Income

₹ 20,285

₹ 19,368

4.73%

₹ 20,978

-3.30%

Net Profit

₹ 2,357

₹ 1,100

114.36%

₹ 2,941

-19.87%

Diluted EPS

₹ 7.67

₹ 3.89

 

₹ 9.58

 

Net Margins

11.62%

5.68%

 

14.02%

 

Gross NPA Ratio

3.85%

4.72%

 

3.70%

 

Net NPA Ratio

1.20%

1.23%

 

1.05%

 

Capital Adequacy

18.67%

17.29%

 

19.12%

 

 

For Jun-21 quarter, retail banking and treasury revenues were marginally higher by 2-3% but corporate banking revenues were down. In Q1 CASA deposits were up 19% with CASA deposits accounting for 42% of deposit base. Gross NPAs at 3.85%, was lower yoy from 4.72%, which is a positive signal. 
Among brokers ICICI Securities, HDFC Securities and Motilal Oswal have upgraded their target for Axis bank while Edelweiss has downgraded its price target.

Kotak Mahindra Bank Ltd reported 3.87% rise in total revenues to Rs.12,800 crore in the Jun-21 quarter. Net profits were flat at Rs.1806 crore. Kotak reported EBITDA losses in retail banking and in insurance. While retail banking pressure came from rising NPAs, the pressure on insurance came from a spurt in death claims due to COVID 2.0. Here is the financial gist.
 

Rs in Crore

Jun-21

Jun-20

YOY

Mar-21

QOQ

Total Income

₹ 12,800

₹ 12,323

3.87%

₹ 16,176

-20.87%

Net Profit

₹ 1,806

₹ 1,853

-2.51%

₹ 2,589

-30.25%

Diluted EPS

₹ 9.11

₹ 9.56

 

₹ 12.86

 

Net Margins

14.11%

15.03%

 

16.01%

 

Gross NPA Ratio

3.58%

2.67%

 

3.22%

 

Net NPA Ratio

1.34%

0.89%

 

1.23%

 

Capital Adequacy

23.11%

21.23%

 

22.26%

 

 

Overall customer assets (advances plus deposits) grew to Rs.235,358 crore in Jun-21 quarter compared to Rs.216,819 crore in Jun-20 quarter. In Q1, the CASA ratio improved from 56.7% to 60.2% while PAT margins stood at 14.11% in the Jun-21 quarter. Gross NPAs at 3.58%, were high compared to 2.67% last year. 

Among brokers, BNP Paribas and HDFC Securities have upgraded Kotak Bank while Axis Securities and Motilal Oswal downgraded the target. 

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