Stay invested in Axis Bank

P Phani Sekhar of Angel Broking is of the view that long term investors can stay invested in Axis Bank. Sekhar told CNBCTV18, “Axis Bank has become a beneficiary especially of ICICI Bank slowing down in the last 1.5 year or so wherein an Axis Bank has cornered a large market share on personal loans and home loans that ICICI Bank went slow on. This is how Axis Bank really has build its advances’ book and this also happens to be the largest cause for this bank going forward because the net NPA (Non Performing Asset) seems reasonably under control but if the bank were to make full provisions and not take into account the relaxations that RBI has allowed, I think we should be ready for higher NPA going forward.” He further added, “Even considering that I believe the kind of management and the growth trajectory which Axis Bank is on, longterm investors can stay in this particular stock. New investors can buy this stock on declines primarily because although this stock is 4045 per cent of its peak but the valuations are not so cheap as they were maybe one month back; it’s trading at a price to adjusted book of around 1.8.”