Axis Bank Ltd. share price target

Axis Bank is the third largest private sector bank in India. The Bank offers the entire spectrum of financial services to customer segments covering Large and Mid-Corporates, MSME, Agriculture and Retail Businesses. Due to huge fall in markets , we are revising our price target given in result...

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.

The bank has posted healthy 19% improvement in the Net Interest Income to Rs 6808 crore in Q4FY20 with healthy margins at 3.55%. The operating profit grew by 23% to Rs 23438 crore for FY20 with 16% growth in the NII to Rs 25206 crore. NIM for FY20 was 3.51%. The net profit was Rs 1627 crore for FY20. Adjusted for the one-offs, net profit for FY20 would have been Rs 5182 crore, showing an increase of 11%. On business front, the bank has recorded 19% growth in the deposits on quarterly average balance (QAB) basis, with 13% growth in saving deposits and 11% in current account deposits. Further, the Retail Term Deposits (RTD) were up 33% on QAB basis. CASA ratio was 39% on...

Axis Bank reported steady set of numbers for the March quarter with bank's preprovisioning operating profit growing 17% YoY led by NII growth of 19% YoY. Deposit book remain resilient and grew 17% YoY with CASA ratio at 39%. Loan book grew 15% driven mainly by retail that grew by 24%. It saw improvement in asset quality with GNPA at 4.86% vs. 5% QoQ. It increase its provisioning coverage ratio from 60% to 69% QoQ...

Fortifying the balance sheet

Axis Bank reported loss of Rs.13.9bn led by higher provisions amounting to Rs.77.3bn (up 185% YoY) which includes Rs.30bn related to Covid-19. NII grew by 19% YoY led by improvement in NIMs at 3.55% (up 11bps YoY). PPoP grew by 17% YoY (up 2% QoQ) led by lower non- interest income and higher operating expenses. Lower gross slippages came in as a key positive, lowest quarterly accretion in FY20; however increase in BB & Below book was negative. Management guided further downgrades into the BB& below book due to COvid-19 impact; we revised the slippages higher and accordingly credit cost. With management change behind, strong capital in place and focus on secured retail portfolio,...

Slippages moderated to | 3920 crore (~3% of advance). Adding back accounts opted for moratorium, slippages would be up 50 bps. Corporate slippages were at | 1839 crore with | 502 crore from the investment book. With downgrade of three accounts (cement, medical devices, auto ancillary sector), stressed book rose ~20 bps QoQ to | 6530 crore. Credit growth was at 15.5% YoY to | 571424 crore. Growth in retail segment remained robust at 24% YoY, led by unsecured portfolio. Corporate book remained slower at 11% YoY while SME witnessed a blip. Deposit increased...

Axis bank posted a loss of Rs13.9bn (PLe: PAT of Rs5.0bn) mainly on back of Rs34.0bn of COVID related provisions on moratorium, stress scenarios & overdue a/c, while also made +Rs40bn of provisions on legacy NPAs to significantly improve PCR to 69%, up 950bps QoQ. Main highlight of the commentary was a disclosure of 25% of loans have been opted for moratorium on installments, which starts to reflect actual risk for banks and was not visible as yet. Lockdown extension & further opting of moratorium may add to risks of NPAs ahead but we will have to watch if industry will have...

Axis Bank (AXSB) reported a loss of ~Rs 14bn in Q4FY20 as it built added provisions of Rs 35bn towards Covid-19.

Axis Bank posted mixed numbers for Q4FY2020. While operating results were in line, elevated provisions (especially provisions related to the COVID-19 impact) caused the bank to post a loss. The management indicated that the COVID-19 impact on the economy is likely to be a long period and considerable challenges now exist for players across the board. Net interest income (NII) increased by 19% y-o-y to Rs. 6,807 crore (we expected 16.2% y-o-y), while non-interest income increased by 13% y-o-y to Rs. 3,985 crore (driven by higher recoveries). Retail fees constituted 64% of total fee income. Net interest margin improved by 11 bps y-o-y to...