Axis Bank Ltd. share price target

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

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...

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).

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...

21 July 2020 Axis Bank (AXSB) reported in-line 1QFY21 earnings led by strong NII growth, controlled opex and sequential decline in provisions. Even PCR improved 580bp QoQ to 75%. Outstanding funded BB & below pool declined slightly to INR64.2b while moratorium book plummeted to 9.7%, which eased concerns on the asset quality outlook. We have increased our FY21/FY22E estimates by 12%/10% after factoring in higher NII growth and controlled opex, even as we lowered our fee income projections. 1QFY21 PAT of INR11.1b (in-line) was led by strong NII growth and sequential decline in provisions. NII grew 20% YoY (+3% QoQ) to INR69.9b while margins declined 15bp QoQ to 3.4%, impacted by high liquidity and prudent stance on recognizing interest income in the moratorium book. Other income declined 33% YoY (38% YoY decline in fee income). However, this was offset by 25% QoQ decline in opex.

Despite a strong operating performance, Axis Bank reported a net loss of INR 1,388 crore due to a 2.8x increase in provisioning expenditure YoY.

AXSB: Capital raising to fortify balance sheet. Automobiles: Jun'20 Auto Sales Tractors continue to outshine other segments. Oil & Gas: V-shaped recovery in LNG imports

Axis Bank's (AXSB) board today approved a proposal to raise funds not exceeding Rs 150bn this is equivalent to 12.5% of current market capital and 17.6% of Mar'20 net worth.

Axis Bank is the thirdlargest private sector bank in India in terms of asset size, with a balance sheet of ~INR 9tn.