Axis Bank Ltd. share price target

We expect a modest fourth quarter for our banking coverage followed by a sharp credit slowdown in Q1FY21 as the lockdown impact unravels.

Recent interest rate cuts and government stimulus should provide some relief, however the demand slump amid lockdown is expected to deteriorate credit conditions, making business challenging for Banks. We lower our estimates of Net interest income by 4.4% and 14.9%,...

Loan growth continues but slippages at elevated levels Axis Bank provides wide range of banking services in India. The bank's offerings include cash and credit management services, retail banking,...

Over the medium term, bank expect to reach Cost to Assets of 2%. Bank guided that Q4 credit costs will hinge on recoveries from a pipeline of large cases and on any choices bank make to increase PCR. With near normalization of BB and SMA2 levels, bank remain confident of credit...

As on 31st December 2019, the Bank's Gross NPA and Net NPA levels were 5.00% and 2.09% respectively, as against 5.03% and 1.99% respectively end September 2019. The Bank has recognized slippages of Rs 6214 crore during Q3FY20, compared to Rs 4983 crore in Q2FY20 and Rs 3746 crore in Q3FY19. Slippages from the loan book were at Rs 5124 crore and that from investment exposures stood at Rs 1090 crore. Corporate slippages stood at Rs 3891 crore. 81% of this came from previously disclosed BB and below rated clients (fund based loans, non-fund based loans and investment holdings)....

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).