Axis Bank Ltd. share price target

Balance Sheet steady but miss on operating metrics

Axis Bank (Axis) reported weaker-than-expected Q1FY25 PAT of INR 60.3bn (up 4% YoY; ~5% miss) on the back of a 15% YoY rise in operating earnings and ~97% YoY jump in provisioning.

Q1FY2025 numbers were a mixed bag. Net interest income (NII) at Rs. 13,448 crore grew by ~12%
y-o-y/~3% q-o-q. NIMs were stable q-o-q at 4.05%.

Axis Bank (AXSB) reported a net profit of INR60.3b (+4% YoY; 6% miss) in 1QFY25. The miss was due to higher provisions. NII grew 12% YoY and 3% QoQ to INR134.5b (in line).

NII growth remained subdued at 11% YoY on higher cost of funds in line with moderate business growth; credit/deposit grew 14%/13% YoY

Despite slower credit growth at 14% YoY/3.5% QoQ, Axis Bank reported 5bps
QoQ margin expansion, mainly on a contained rise in CoF and steady increase
in share of retail portfolio. This, along with higher trading gains, partly offset
by elevated opex & provision, led to a 5% beat on PAT at Rs71.3bn.