Axis Bank Ltd. share price target

8 Of the total slippages of Rs 20.8bn, the bank recognised Rs 10bn as directed by RBI's review of stressed loans in the system. As per the management, the bank has fully recognisedtheimpactofimpairedassetsassessedbytheRBI.Thebankhasalsobeen...

Over the past few years, Axis Bank has proven its competitive advantages over other private banks through well-managed low-cost deposit franchisees, better geographical diversification and higher fee income generation capabilities along with well-managed asset quality. We believe strong growth in core earnings along with better loan underwriting will help the bank to come out of current challenging scenario. We have introduced FY18E estimates for the bank and expect PAT of Rs97bn and Rs114bn in FY17E and FY18E, respectively. Further, we have reduced our adjusted book value estimates due to sharp increase in net NPA along with increase in exposure...

Axis Bank's Q2FY16 results were in- line with estimates as the earnings grew by 18.9% YoY (-3.2% QoQ) to Rs 19.2 led by a strong growth in the NII and lower opex and provision expenses. NII of Rs 40.6 bn (15.2% YoY growth and flat QoQ) also remained in-line with estimates. Strong growth in advances of 23.1% YoY and 4.7% QoQ was led by strong growth in corporate and retail advances. NIMs improved marginally by 4 bps QoQ to 3.85%. Asset quality remained stable as GNPA and NNPA came in at 1.38% and 0.48% respectively. Stressed asset formation at Rs25 bn, included accounts sold to ARCs worth Rs18.2bn.

8 Slippage was high at Rs 24bn due to power exposure of Rs 18bn turning bad. Overall asset quality was maintained, as the bank sold NPAs to ARC and adjusted loss on sell downofNPAtoARCagainstcontingentprovision....

Bank, promoted in 1994, is a new generation and third largest private sector bank. Loan book mix consists of Corporates 46%, Retail & Agri 40%, SME-14%. Fee Income accounts for ~31% of Total Income. For FY 2QFY16 CAR 15.1%, Tier I - 12.4%, ROE 17.9%, RoA - 1.7%, Cost / Inc 40.2%. Axis Bank has built a reasonable retail infrastructure, with 2589 branches, 12,355 ATMs in 1113 cities & towns and a...

Axis Bank's 2QFY16 result was in-line with our estimates as the earnings grew by 19.9% yoy and declined 3.2% qoq to Rs19.2bn. Earnings performed well mainly on account of healthy growth in core operating income (+14.8% yoy and 4.8% qoq) along with lower provision expenses (-2.5% yoy and -37% qoq). Headline asset quality remained stable sequentially due to lower fresh slippages along with proactive sale of loan to ARC. The bank sold loans worth Rs18.5bn and reported fresh slippages of Rs5.8bn during 2QFY16. Combined addition to gross NPA in 2Q stood at Rs26bn v/s Rs11.9bn in 1QFY16 and Rs9.1bn in 2QFY15. Loan book rose...

Retail credit growth still strong, strong retail deposits share. At 22.2% yoy, credit growth was driven by retail (26.2% yoy) and farm (32.7% yoy) segments. While deposits grew 14.8% yoy, CASA (low-cost deposits) grew 14.2% yoy. CASA share in deposits rose 166bps qoq (down 23bps yoy) to 44.8%. Also, the retail liability base improved further, with the share of retail...

Axis Bank's Q1FY16 results were above estimates as the earnings grew by 18.7% YoY (-9.3% QoQ) to Rs 19 bn led by strong growth in non- interest income as well as lower opex cost. NII of Rs 40.6 bn (22.5% YoY & 6.8% QoQ growth) was marginally above estimates. Strong growth in advances of 23.5% YoY and 1.3% QoQ was led by strong growth in corporate and retail advances.

Axis Bank's Q1FY16 PAT (Rs 19.8bn vs. expected Rs 19.6bn) was up 19% yoy, driven by healthy progression in revenue stream. NII grew 22.5% yoy aided by 23.5% growth in advances. Growth in noninterest income was driven by healthy growth in retail core fee...