Axis Bank, Kotak Bank and Bajaj Finance Share Q2 Results

Axis Bank, Kotak Bank and Bajaj Finance Share Q2 Results

by 5paisa Research Team Last Updated: Dec 11, 2022 - 06:49 pm 48.6k Views
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On 26th October, 3 heavyweight financials announced their results viz. Axis Bank, Kotak Bank and Bajaj Finance. Here is a gist of the 3 results announcements.
 

Axis Bank - Q2 Results

Axis Bank reported 4.17% increase in revenues in the Sep-21 quarter at Rs.20,967 crore. Profit after tax was up 84.5% at Rs.3,388 crore. Income from treasury was 4% up YoY while revenues from corporate banking were down 1.12%. Retail banking revenues were up 6.7%. Retail pressure showed as EBIT in retail banking almost halved due to spike in bad assets.

 

Rs in Crore

Sep-21

Sep-20

YOY

Jun-21

QOQ

Total Income

₹ 20,967

₹ 20,127

4.17%

₹ 20,056

4.54%

Operating Profit

₹ 6,304

₹ 6,918

-8.87%

₹ 6,511

-3.18%

Net Profit

₹ 3,388

₹ 1,837

84.45%

₹ 2,357

43.73%

Diluted EPS

₹ 11.02

₹ 6.22

 

₹ 7.67

 

Operating Margins

30.07%

34.37%

 

32.47%

 

Net Margins

16.16%

9.13%

 

11.75%

 

Gross NPA Ratio

3.53%

4.18%

 

3.85%

 

Net NPA Ratio

1.08%

0.98%

 

1.20%

 

Return on Assets (Ann.)

1.19%

0.73%

 

0.86%

 

Capital Adequacy

19.23%

18.92%

 

18.67%

 

 

The good news for Axis Bank was that quarterly profits were at an all-time high on standalone basis, while the credit costs stood at 0.54%. The net slippages in the quarter were largely under control at 0.46% and the CASA ratio share improved 200 bps at 42%. The boost to net profits came from the sharp fall in provisions for doubtful assets by 60% at Rs.1,763 crore.

Axis reported 8% higher net interest income or NII for the quarter while net interest margins or NIM stood at a relatively healthy 3.9%. Gross NPAs and net NPAs fell on YoY basis, even as net profit margins at 16.16% was robust on a comparative basis.

 

Kotak Mahindra Bank - Q2 Results


Kotak Mahindra Bank reported 13.24% rise in total consolidated revenues in the Sep-21 quarter at Rs.15,342 crore. Net profits were up just about 1.43% YoY at Rs.2,989 crore although profits were up 65.5% on a sequential basis. The big boost to revenues at a consolidated level came from insurance with revenues growing 36% to Rs.5,083 crore.

 

Rs in Crore

Sep-21

Sep-20

YOY

Jun-21

QOQ

Total Income

₹ 15,342

₹ 13,548

13.24%

₹ 12,571

22.04%

Operating Profit

₹ 4,365

₹ 4,345

0.47%

₹ 3,377

29.25%

Net Profit

₹ 2,989

₹ 2,947

1.43%

₹ 1,806

65.48%

Diluted EPS

₹ 15.06

₹ 14.89

 

₹ 9.11

 

Operating Margins

28.45%

32.07%

 

26.87%

 

Net Margins

19.48%

21.75%

 

14.37%

 

Gross NPA Ratio

3.16%

2.55%

 

3.58%

 

Net NPA Ratio

1.09%

0.70%

 

1.34%

 

Return on Assets

0.60%

0.64%

 

0.37%

 

Capital Adequacy

21.76%

22.05%

 

23.11%

 

 

EBIT contributions of treasury and corporate banking verticals of Kotak Bank were higher on a YoY basis, albeit marginal. However, EBIT of retail business fell 96% due to spike in asset stress in the retail business. Insurance also saw a sharp fall in EBIT due to a spike in claims paid and provisions for COVID-2.0. While NII was up just about 3% at Rs.4,021 crore, Kotak reported 4.45% NIMs., among the most robust in the peer group.

Customer assets at Kotak Bank grew 17% at Rs.256,353 crore on a YoY basis. Healthy CASA has been the hallmark of Kotak Bank and it improved further by 350 bps to 60.6%. While credit costs stood at 0.63%, gross NPAs increased 61 bps to 3.16%.
 

Check - Axis Bank and Kotak Mahindra Bank – Q1 Results

 

Bajaj Finance - Q2 Results


Bajaj Finance Ltd reported 18.6% growth in revenues for Sep-21 quarter at Rs.7,732 crore while net profits were up 53.5% at Rs.1,481 crore on a YoY basis. Bajaj Finance saw 16% spike in interest income YoY at Rs.6,687 crore and its fee and commission income also grew 27.4% at Rs.733 crore. The big story for Bajaj Finance in the quarter was the 28% spike in net interest income or NII at a healthy Rs.5,335 crore.

 

Rs in Crore

Sep-21

Sep-20

YOY

Jun-21

QOQ

Total Income (Rs cr)

₹ 7,732

₹ 6,520

18.59%

₹ 6,743

14.67%

Operating Profit (Rs cr)

₹ 2,004

₹ 1,305

53.54%

₹ 1,366

46.75%

Net Profit (Rs cr)

₹ 1,481

₹ 965

53.49%

₹ 994

49.02%

Diluted EPS (Rs)

₹ 24.42

₹ 15.98

 

₹ 16.54

 

OPM

25.92%

20.02%

 

20.26%

 

Net Margins

19.15%

14.80%

 

14.74%

 

 

During the quarter, there was a 25% fall in impairment provisions on investments, while the loan losses and provisions fell from Rs.1,700 crore to Rs.1,300 crore. Gross NPAs fell 51 bps to 2.45% YoY. This ensured that the OPM or operating margins stood at 25.92%; nearly 500 bps better than the previous quarters.

The capital adequacy ratio of Bajaj finance is extremely comfortable at 27.68% with Tier-1 capital adequacy at 24.9%. Bajaj Finance saw its AUM grow by a healthy 23% while deposits grew 33% in Q2. Net margins for the Sep-21 quarter at 19.15% were 440 bps better than the previous quarters.

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