Axis Bank Ltd. share price target

Axis Bank reported a healthy balance sheet growth with advances up 15.8% YoY to | 550138 crore. Domestic credit growth came in higher at 18% YoY. Growth in retail continued to remain robust at 25% YoY to | 291554 crore, led by healthy growth in unsecured portfolio, auto & small business banking, while SME witnessed a marginal blip. The corporate segment grew 9% YoY. Deposit increased 15.1% YoY to | 591676 crore, though incremental absolute accretion remained weak as the bank deployed capital raised in...

Axis Bank reported an impressive growth in net interest income (NII) on account of marginal expansion in net interest margin (NIM) and robust loan growth in loans & advances.

22 January 2020 AXSB reported an in-line operating performance, but slippages stood elevated with BB and below pool driving 81% of total corporate slippages. Outstanding BB and below pool declined 18% QoQ to INR51.3b. We cut our EPS estimate for FY21/22 by 4%/5% to factor in higher opex/provisioning expenses and slight moderation in NII. AXSB reported PAT of INR17.6b (+4.5% YoY, in-line). NII increased 15% YoY to INR64.5b (in-line), led by healthy domestic loan growth and margin expansion of 6bp QoQ to 3.6%. Other income declined 5.4% YoY to INR37.9b owing to muted fee growth of 6% YoY. PPoP increased 4% YoY to INR57.4b (in-line).

Axis Bank's (AXSB) Q3FY20 PAT at ~Rs 18bn missed estimates due to above-expected provisions.

Axis Bank is the thirdlargest private sector bank in India in terms of asset size.

Momentum in line with improving operating metrics Axis Bank provides wide range of banking services in India. The bank's offerings include cash and credit management services, retail banking,...

The operating expenses grew slightly by 6% significantly lower than 26% growth in net revenues, helping the operating profit to jump 45% in Q2FY2020. Cost to Assets ratio exhibited a further improvement to 2.06% from 2.08% in Q1FY20....

Axis Bank is the thirdlargest private sector bank in India in terms of asset size. The Bank has a large footprint of ~4000 domestic branches spread across the country.

Our constructive stance on AXSB draws from the leadership change, (resultant) better underwriting, a healthy B/S (CRAR at 18.5% and PCR at 61% + contingent provisions at ~9% of GNPAs) and the worst of asset quality long behind the bank. We see a steady upward climb in delivered RoAAs, driven by falling credit costs as well as oplev under capable leadership. Our conservative growth (17% CAGR) and LLP (160bps) assumptions hold significant upside risk. Maintain BUY. Our SOTP of Rs 958 assigns 2.75x Sept-21E ABV of Rs 339 + subs value of Rs27. AXSBs 2Q surprised as overall stress dipped, asset quality improved (despite higher slippages) and NIMs improved sequentially. While operating performance was in-line, the DTA mark-down of Rs 21.4bn resulted in a net Loss. Maintain BUY with a TP of Rs 958 (2.75 x Sept-21E ABV of Rs 339 + Rs 27 for subs).

Axis Bank posted a loss of Rs.1.12bn due to a one-time impact of deferred tax asset (DTA) in the P&L; on account of corporate tax rate cut. Adjusted for DTA; PAT would have grown by 157% YoY to Rs.20.26bn. NII grew by 17% YoY led by improvement in NIMs at 3.51% (highest in last 9 quarters). PPoP has grown significantly, driven by 45% YoY growth in noninterest income. Gross slippages came in as a key negative, given the quantum was a 5-Qtr high figure at Rs49.8bn; however decline in BB & Below book was positive. With most of the asset quality issues behind and senior management in place, we remain confident of the structural growth story of the bank. Hence, we retain our BUY rating on the stock and revise...