Axis Bank Ltd. share price target

Fresh slippages fell to INR41.47b (v/s INR54.6b in 2QFY22), while higher recoveries and upgrades at IN32.88b and write-offs of INR17.07b enabled a 36bp/17bp QoQ decline in GNPA/NNPA ratio. Net NPA fell below 1% to 0.91%. We expect AXSB to deliver an FY24E RoA/RoE of 1.6%/16.1% in...

Asset quality stable; Recoveries at an all-time high Axis Bank offers a wide range of banking services in India that includes cash and credit management services, retail banking, investment management...

Axis Bank's restructured assets stood at 0.66% lower than its peers; as minimal restructuring under 2.0. Asset quality improved with GNPA at 3.53% vs 3.85% led by lower slippages and higher recoveries and upgrades. However, credit growth slows down to 10% YoY vs 12% YoY (Q1FY22); lower than its peers led by decline in corporate book (down 5% QoQ). PAT grew by 86% YoY led by lower provisions (down 60% YoY). NII grew by 8% YoY led by decline in NIMs at 3.39% (3.46% QoQ). PPoP declined by 11% YoY (down 4% QoQ) led by higher operating expenses (up 36% YoY). With management change behind, strong capital in place and focus on secured retail portfolio, AXISB...

Axis Bank has recorded strong 86% growth in the net profit to all time high quarterly profit level of Rs 3133 crore in Q2FY22. Strong CASA and fee performance, accelerating loan growth in focus segments, limited restructuring, improving asset quality, resilient balance sheet supported the performance of the bank in Q2FY2022. The bank has recorded fee income growth of 17% YOY and 21% QOQ. Net interest margin eased to 3.39% in Q2FY2022 from 3.46% in the previous quarter and 3.58% in the...

Axis Bank (AXSB) delivered a weak operating performance in 2QFY22 that was characterized by margin weakness (7bp QoQ decline) and a muted trend in Core PPoP. However, lower provisions (INR17.3b) aided earnings which surpassed our estimate by 13%. Business growth was tepid and was pulled down by a 5% QoQ decline in corporate advances, while a strong sequential recovery was witnessed in SME/Retail loans. On the asset quality front, fresh slippages remained elevated at INR54.6b although higher upgrades/recovery of INR47.6b aided an improvement in...

GNPA down 32 bps QoQ to 3.53%. R/S book up 31 bps at 0.64% What should investors do? Axis Bank's share price has given over 65% return in past one year. We believe the bank's healthy capitalisation and provision buffer...

Yet another muted quarter

In Q1FY22, Net interest income improved 11.1% YoY and 2.7% QoQ, with NIM margin of 3.46% (-10bps YoY, +6bps QoQ). Pre-provisioning profit rose 9.8% YoY to Rs. 6,416cr. Lower provisions helped PAT to surge 94.2% YoY to Rs. 2,160cr. On QAB (Quarterly Average Balance) basis, CASA ratio expanded 342bps...

Overall a weak quarter

Earnings in line; asset quality deteriorates slightly Motilal Oswal values your support in the Asiamoney Brokers Poll 2021 for India Research, Sales, Corporate Access and...