Axis Bank Ltd. share price target

Asset quality healing and earnings improvement at AXSB have been admittedly slower than expected, however the broader trajectory remains unchanged. Largely stable NPLs and a reduction in std. stress point to this. Our constructive stance remains premised on the leadership and strategic changes at the bank, better underwriting and a healthy B/S (CRAR at 18.7% and PCR at ~59% calc.). We continue to see a steady climb in RoAAs, in spite of our conservative estimates (17% loan CAGR, ~2.8% slippages and 1.7% LLPs). Maintain BUY. AXSBs 3Q operating performance was in-line with estimates. Elevated LLPs continued, and exceeded our estimates, consequently, PAT was ~17% below expectations. While asset quality was largely stable in spite of higher slippages, the BB and below rated loan pool dipped ~18% QoQ. Maintain BUY with a TP of Rs 988(2.75x Dec-21E ABV of Rs 350 + Rs 27 for subs)

Axis Bank PAT grew by 5% YoY to Rs.17.57bn led by lower tax rate; PBT de-grew by 8% YoY led by higher provisions (up 14% YoY). NII grew by 15% YoY led by improvement in NIMs at 3.57% (highest in last 10 quarters). PPoP grew by 4% YoY (down 3.5% QoQ) led by decline in non- interest income and higher operating expenses as bank frontloaded expenses of Rs.1.2bn during the quarter. Gross slippages came in as a key negative, given the quantum was a 6-Qtr high figure at Rs62.14bn; 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...

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.