Swiggy’s Anticipated IPO: A $15 Billion Valuation in the Making
Axis Bank, Kotak Bank and Bajaj Finance Share Q2 Results
![Axis Bank, Kotak Bank and Bajaj Finance Share Q2 Results Axis Bank, Kotak Bank and Bajaj Finance Share Q2 Results](https://storage.googleapis.com/5paisa-prod-storage/files/2021-10/Axis%20Bank%2C%20Kotak%20Bank%20%26%20Bajaj%20Finance%20-%20Quarterly%20Results.jpg)
![No image No image](https://storage.googleapis.com/5paisa-prod-storage/files/styles/thumbnail/cloud-storage/default_images/author.png?itok=5521dpnB)
Last Updated: 11th December 2022 - 06:49 pm
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.
Trending on 5paisa
Discover more of what matters to you.
Indian Stock Market Related Articles
Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. For detailed disclaimer please Click here.