External broker reports(aggregated public sources), Axis Direct

Axis Direct

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. 

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External broker reports(aggregated public sources)

Equity Bottom-Up

<p>Karnataka Bank(KBL): Q1FY22results were a mixed bag with improved NIM and lower C-I but with higher restructuring and lower non-interest income. NII was up 7%/25% YoY/QoQ led by improvement in NIM by 9bps/57bps YoY/QoQ to 2.98%. The loan book was down 4.5% YoY and up 0.2% QoQ to Rs 51,791Cr. Loan mix composition included Retail/Mid-Corporate/Large Corporate at 52%/34%/14% as the bank has run down its large corporate book from 30% in Mar’19.Non-interest income growth was muted, down55%/37% YoY/QoQ.C-I ratio has improved to 48.9% from 53.9% QoQ. This led to PPOP growth of 8% QoQ but down 39% YoY to Rs 414 Cr. G/NNPAs marginally improved to 4.8%/3% from 4.9%/3.2% QoQ. Provisions declined 28% YoY but wereup 8% QoQ to Rs 368 Cr. PAT was down 46% YoY and up 238% QoQ to Rs 106 Cr, supported by a tax write-back of Rs 60 Cr during the quarter.</p><p>We maintain SELL on the stock with a target of Rs 50/share (~0.25x FY23E ABV).</p><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

Karnataka Bank(KBL): Q1FY22results were a mixed bag with improved NIM and lower C-I but with higher restructuring and lower non-interest income. NII was up 7%/25% YoY/QoQ led by improvement in NIM by 9bps/57bps YoY/QoQ to 2.98%. The loan book was down 4.5% YoY and up 0.2% QoQ to Rs 51,791Cr. Loan mix composition included Retail/Mid-Corporate/Large Corporate at 52%/34%/14% as the bank has run down its large corporate book from 30% in Mar’19.Non-interest income growth was muted, down55%/37% YoY/QoQ.C-I ratio has improved to 48.9% from 53.9% QoQ. This led to PPOP growth of 8% QoQ but down 39% YoY to Rs 414 Cr. G/NNPAs marginally improved to 4.8%/3% from 4.9%/3.2% QoQ. Provisions declined 28% YoY but wereup 8% QoQ to Rs 368 Cr. PAT was down 46% YoY and up 238% QoQ to Rs 106 Cr, supported by a tax write-back of Rs 60 Cr during the quarter.We maintain SELL on the stock with a target of Rs 50/share (~0.25x FY23E ABV).Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Karnataka Bank

Karnataka Bank: Mixed Performance