Axis Bank Ltd. (AxisB) Q4FY18 performance was adversely impacted by high NPA provisions. Slippage increased by over 3x QoQ due to the RBI's revised guidelines for resolution of stressed assets and thereby GNPA rose by 149 bps QoQ to 6.8% in the reported quarter. We drive comfort from aggressively recognition of NPAs as bulk of stress has now been recognized and watch list at Rs4,280 mn was reduced to 0.1% of advances by Q4FY18. Credit growth at 18% YoY remained healthy and share of low cost deposits base increased to 54%. Recent capital infusion has improved the capital position with CAR at 16.6% which we think is sufficient to...