Axis Bank’s share price jumped back in the green on Thursday morning halting its five straight session losing streak.

What Happened: Axis Bank reported a net profit of ₹5,863 crore for the quarter ended September. This marks a 10% increase from the ₹5,329.8 crore profit it reported in the same quarter last year.

The bank’s net interest income (NII)  – the difference between the income a lender makes from its lending activities and the interest it pays to depositors – witnessed an 18.9% year-on-year growth, reaching ₹12,314.56 crore in the July-September period compared to ₹10,360.26 crore in the corresponding period.

Net interest margin (NIM) for the quarter was reported at 4.11%, reflecting a slight uptick of 1 basis point quarter-on-quarter and 15 basis points year-on-year.

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For the quarter ending in September, the gross non-performing assets (NPA) decreased to ₹16,756.7 crore from ₹18,158.2 crore reported in the June quarter. Net NPA stood at ₹3,441.3 crore, demonstrating a 7.1% sequential decline.

As of September 30, 2023, the gross NPA ratio was recorded at 1.73%, marking a 23 basis point drop from the 1.96% reported at the end of the June quarter. Similarly, the net NPA ratio came in at 0.36%, reflecting a 5 basis point decrease quarter-on-quarter.

Analyst Reactions: Jefferies maintained its “buy” rating for the stock raising the price target to ₹1,250 from ₹1,200. The research firm noted that the bank’s NIM was stable and there was growth in the loan book. CLSA also maintained its “buy” stance on the private lender with a target price of ₹1,200. The global brokerage said that the bank’s NIM performance was better than its peers.

On the other hand, Macquarie maintained its “neutral” rating for the stock with a price target of ₹980.

Price Action: Axis Bank’s share price was up 0.97% to trade at ₹964.70 at market open on Thursday.

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