PICK OF THE WEEK (Nov 1)

Indusind Bank — Buy Recommendation by LKP Securities Indusind Bank has reported better than expected numbers in 2QFY21, as it gross slippages declined at Rs 3.9 billion v/s Rs 15.4 billion in 1QFY21.
The bank’s collection efficiencies have improved significantly (~95% as on Oct-20) and one of the best among large private banks. The capital infusion (post money CET 1: 14.5%) would provide further cushion. Furthermore, the liquidity surplus of ?400bn is likely to safeguard the balance sheet. We expect the credit cost to normalize in 2HFY21 and return ratios to reach the previous run rate.
Hence, we have a positive outlook on the bank with a BUY rating.
Axis Bank — Buy Recommendation by Centrum Broking Axis Bank Q2FY21 earnings were largely in-line with PAT at Rs16.8 billion (est. Rs 17.2 billion). NII was a beat mainly driven higher NIM led by lower deposit cost. Loan growth was slightly lower at 10.5% YoY as SME was a drag though retail/corporate performed well.