Axis Bank (BSE code 532215) is currendy trading at Rs 651.00 (52 week high/low Rs 1,291.00/561.10). During Q1 the bank added 42 branches and 140 ATMs. On the financial front, the bank has posted a top line of Rs 2,266.44 crore in Q1FYO9 against Rs 1,536.97 crore in Ql FY08 with a robust YOY growth of 47.46 per cent, while the bottom line stood at Rs 330.14 crore against Rs 174.98 crore
during the same period with an astounding growth of 88.67 percent. The Net Interest Income for the bank that stood at Rs 810.46 crore saw a growth of 92.55 per cent whereas the Net Interest Margins which were 2.56 per cent in Q1FYO8 stood at 3.35 per cent in Q1FYO9.
Even the fee income that stood at Rs 483.54 crore in Q1FYO9 has grown by 79.77 per cent YOY. During the same period, the deposits have increased to Rs 88,973 crore (Rs 61,091 crore) and net advances to Rs 61,160 crore (Rs 41,285 crore), witnessing a growth of 46 per cent and 48 per cent respectively. The bank was also able to curtail its NPA that stood at 0.47 per cent as compared to 0.59 per cent in the same quarter last year. In Q1FYO9, the bank managed to have a YOY growth of 53.70 per cent in its CASA deposit of Rs 35,449 crore (Rs 23,062 crore). In terms of CASA ratio, the bank stood 3rd with 40 per cent following HDFC (45 per cent) and SBI (42 per cent). AXIS is currently available at a P/E of 21 .74x of its FY08 earnings and at a P/B of 2.7 lx. However, the bank has been aggressive and can be considered for long term investment.
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