Axis Bank may not be a G-Sifi candidate in the next 3-5 years but as no one can call the banking industry superstructure ahead of that and India and China, with Poverty administration and Affordable housing auras for the big jump and the better consumer dempgraphic it may yet be someone like Axis apart from the Big three and the younger Private Sector banks that go out as global leaders. ICICI Bank of course, the current bete noir for Axis, is already holding 25% of its loan book in International loans.
Back on the current quarter, Axis Bank makes that magical mark of growing 20% in Topline and 30% in bottomline while CAR grows to just under 14% making it more imperative for the banlk to not hold on expansiona nd not lose sight of Asset quality performance in the next 2-3 years whence it would also not be welcome in the markets for more Capital issuance once it hits 15% in CAR
Net income is up 22% over the last year quarter but the bank has shown the growth to use the magic marker especially on the annual figures when they come out in April/May. Net NPas are just 0.33% and Gross NPAs 1.10% income from Loans net of the cost of funding is a clean INR 24.94 Bln, the NII being 16% higher on Q3 of last year. The Bank ahs been able to bring down the numbers on Provisions even as norms are being tightened making for a better profit.
The bank still has available FII interest and as of Q2 2011 it had only a 31% FII interest which is likely to have grown in double digits since then. Sequentially, the bank had a positive less tha n 5% growth in both NII and likely Other Income , . As e wwait for management speak, it would be another INR 16 bln in other income if that is indeed so, bringing Topline to above INr 40 Bln. the IB business was transferred to a subsidiary. The topline is near 2/3rd s of the Top 2 private sector indian representations and still comes to less than $800 mln failing to hit the $ 1 Bln revenue quarterly target we set as a hard target for those that can indeed grow globally. It is however the third year for the bank under new management and growth seems stunted compared to what it initially achieved in 2011-12 over 2010-11