Hot Chips - Axis Bank

Axis Bank
BSE Code: 532215
Volume: 811459
CMP: 716.20

The bank in the last five years has grown by over 54.05 per cent in the topline and 52.62 per cent in its bottomline on a CAGR basis. And for FY09, the bank has recorded decent growth in its topline as well as bottomline, recording growth across its business spectrum. While for Q4 as well as the past few years, the company has been one of the fastest growing banks. In FY09, the bank recorded a major decline in its NIMs by 56 basis points on account of the rise in the cost of funds by 82 basis points. However, at the same time, the bank’s net NPAs stood at 0.35 per cent that improved marginally suggesting that the growth in the financials are not at the cost of asset quality deterioration. A fund manager expects large banks like Axis to put up decent financial performances for the coming quarters in FY10. The counter has rallied in the past three months. Thus, investors are suggested to enter this counter at its current level to fetch medium to long-term gains.