Axis Bank Ltd. share price target

Improved NIM, growth in loans and deposits, comfortable cumulative provisions and stable asset quality should aid growth in the upcoming quarters. Hence, we reiterate our BUY rating on the stock with a revised TP of Rs. 603 based on 1.7x FY22E BVPS. Net interest margin expansion helps performance In Q2FY21, Interest income rose by 4.0% YoY to Rs. 16,063cr. However, Net interest income (NII) witnessed a solid growth of 20.1% YoY (+4.9% QoQ) supported by the expansion in Net interest margin of 3.58%, up 7bps YoY and 18bps QoQ basis. The...

2020. The overall provisions were strong at 124% GNPA end September 2020. The bank has recorded strong 20% surge in the Net Interest Income in Q1FY21. The Net Interest margin (NIM) of the bank improved 18 bps qoq to 3.58% in Q2FY2021. Fees have jumped 67% qoq, while also increased 4% on yoy basis. The bank has improved cost to assets ratio below 2% by 3bps qoq to 1.97%. With the improved...

Axis Bank's (AXSB) Q2FY21 PAT was healthy at Rs 17bn driven by 20% YoY growth in NII and a 16% uptick in operating profit.

We retain BUY on Axis Bank and increase price target to Rs586 (Rs550 before) underpinnedbyearnings/BVupgrade.Earningshavebeenrevisedupwardsbylifting NIM and core fee growth assumptions. Considering management's assessment of probablerestructuringpoolandencouragingcollectiontrends(demandresolutionat 97%inOct),webelievethatdownsideriskstoourprevailingcreditcostestimateshas diminished.Hence,bank'sreturnratioswillmostlikelyrecoversharplyinFY22.The...

Credit growth was at 10.5%YoY with retail and corporate segment growing 12% YoY while SME book fell 1% YoY. The bank has been taking a cautious approach in lending towards commercial banking and SME segment while focusing on secured retail loans and highly rated corporates. Over the medium term, the bank expects loan growth to be 500-600 bps higher than the industry growth. Total 80% of retail loans is secured while 82% of incremental loan to corporate are to A- and above category. Deposits grew 8.8% YoY driven by 17% YoY rise in CASA deposit....

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).