Axis Bank Ltd. share price target

Axis Bank is well-capitalised with a strong CRAR (CET1 of 15.4%); and its digital prowess, improving business traction across segments, near-normal collection efficiency and business strengths indicate an improving outlook. Axis Bank trades at 1.4x / 1.3x FY2022E / FY2023E book value per share; we have...

Digital channels has served the customers well during COVID period with activity and transaction volumes on digital channels now back to pre-COVID levels after an initial dip in April and May....

Axis Bank continued with its change in accounting policy in Q1FY21 in terms of fee recognition on letter of credit (LC) and annual fees on debit cards to amortisation over its life from upfront.

Axis bank's earnings of Rs11.1bn was inline (PLe:10.9bn) mainly driven by NII growth of 19.5% YoY and relatively lower provisioning. Important data point to note was trackable moratorium book was only 9% of loans v/s 2528% in last quarter with basic difference that morat 2.0 was on selected basis v/s opt out in most business segments. Bank has collected for 80% of customer from morat 1.0 which is basically on June dues as Mar-May have been adjusted in respective tenures, while the rest 20% are being collected or will move according to dpd. Tail risks are high from Morat 2.0, few collections from morat 1.0 and those have been given adjustments in tenure...

Axis Bank's (AXSB) Q1FY21 PAT declined 19% YoY to Rs 11bn owing to weak fee income (38% YoY/44% QoQ) and accounting policy changes (~Rs 5bn hit).

Despite weaker other income, PPoP growth was better than expected aided by higher NII growth at 20% YoY and decline in opex. Though slippages were low at 1.6% owing to moratorium, higher credit costs at 250 bps was mainly led by rise in PCR to 75% (from 69%) and incremental provisions of ~90% on net slippages. Apart from weak loan originations, fee income was also impacted by...

PAT would have been 12% and 240% higher than our estimate.Conservatismwasalsoreflectedinthebankadding Rs7.3bn to its contingent provisions balance which now...

Continues accelerated provisioning for challenges ahead, above estimates Axis Bank has posted 19% decline in the net profit to Rs 1112.17 crore in the quarter ended June 2020 driven by sharp decline in the non-interest income and increase in provisions. However, the bank has recorded strong 20% surge in the Net Interest Income in Q1FY21 while the bank also improved cost to assets ratio by 8 bps qoq to 2.00% The business growth of the bank was stable with 19% growth in deposits, while the loan book...

Axis Bank reported PAT of Rs.11.1bn vs loss of Rs.13.9bn QoQ as provisions declined by 43% sequentially. Moratorium book as of April 25 stood at 28% which declined to 9.7% as of 30 June'20 due to change in policy as against opt-in during phase 1. Asset quality issues need to be watch out for in H2FY21. NII grew by 20% YoY led by stable NIMs at 3.4% (flat YoY). PPoP declined by 1% YoY (flat QoQ) led by 33% YoY decline in non- interest income. Lower gross slippages could be due to standstill classification; however BB & Below book net decline at slower pace remains a key concern. With management change behind, strong capital in place and focus on secured retail portfolio, AXISB would see better revival in...

Axis Bank posted strong numbers for Q1FY2020. While operating results were better than expectations, and moratorium book declined on a sequential basis, adopting a conservative provision policy and slow growth on business impacted the fee income. Notably, the moratorium book has declined to 9.7% from ~26% earlier, which is a clear positive. Net interest income (NII) increased by 19.5% y-o-y to Rs. 6,985 crore (better than expectations), while non-interest income decreased by 33% y-o-y to Rs. 2587 crore (lower growth, waiver of charges etc). Retail fees constituted 57% of the total fee income. Net interest margin declined to...