Axis Bank Ltd. share price target

Axis Bank reported a stellar set of numbers Asset quality improved further in Q2FY19. Slippages came in at | 2777 crore (lowest in last several quarters) vs. | 4337 crore in Q1FY19. Corporate slippages were at | 1090 crore. Total 88% of this came from disclosed BB & below accounts. The bank's BB & below rated book was at | 8860 crore. This is 1.7% of the bank's gross customer assets vs. 7.3% peak reached in June 2016 Exposure to IL&FS; is relatively lower at | 825 crore. Of this | 238 is...

Maintain BUY with a TP of Rs 718 (2.5x Sept-20E ABV of Rs 287). AXSBs 2Q performance was characterized by continued amelioration in asset quality, improving growth and visible focus on the granular business in line with our expectations. We expect this trend to strengthen as Amitabh Choudhary takes charge.

We retain HOLD on Axis Bank with TP revised upwards to Rs560 (valued at 2x FY20E ABV) . Q2'19 results were in-line with our estimates on revenue / operating front. Slippages came in lower (2.4% of loans); provision coverage therein has improved further. The share of vulnerable pool is now at a meagre 1.7% of customer assets and provides greater comfort. Capital position remains strong and will cushion asset growth in the credit up-cycle. While we see levers in place, we would await for better clarity on long-term growth strategy for the bank under the leadership of the new management (change of guard will be effective from...

The stock may remain volatile in the near term, in line with asset quality developments. Our TP is 718 (on an upgraded multiple of 2.5x Sept-20E ABV of Rs 287). Over FY16-18, AXSB has stumbled over several setbacks, namely (1) Corporate NPAs have blown up to 15%, (2) Very adverse Asset Quality Divergence reporting, (3) Several cases of non-compliance at branches during demonetization, and (4) The RBIs nudge to the AXSB Board to reconsider extension of the MD & CEOs tenure.

Axis Bank has announced appointment of Amitabh Chaudhry as the new MD & CEO of the bank for a period of three years with effect from 1st January 2019. Bank has already received RBI approval on the same. This move will be perceived positively as it ends uncertainty which emerged after resignation of Shikha Sharma on account of RBI not approving her re-appointment. Mr.Chaudhry is currently MD & CEO of HDFC Standard Life Insurance and has formidable track record with wide experience in leadership role. He also has experience in corporate banking in the past. With such rumors already being there, its stock has given a return of 25% over last 2 months. We believe large...

ICICI Securities Ltd | Retail Equity Research The Reserve Bank of India (RBI) has approved the appointment of Amitabh Chaudhry as MD & CEO of Axis Bank for three years with effect from January 1, 2019 up to December 31, 2021. As directed by RBI, current CEO Shikha Sharma's term would continue until December 31, 2018. Brief profile of Amitabh Chaudhry Amitabh Chaudhry, 54 years, was the Managing Director & CEO of HDFC Standard Life Insurance Company. He has been associated with HDFC Life...

9 September 2018 Mr. Amitabh Chaudhry has been the MD & CEO of HDFC Standard Life since Jan- 10. Mr. Chaudhry started his career in corporate banking with Bank of America in 1987, where he worked in diverse roles ranging from Country Finance Officer, Head of Wholesale and thereafter as MD and Head Technology - Investment Banking, Asia. Mr. Chaudhry was also associated with CLSA as its MD, Head South East Asian Investment Banking and Head Technology Investment Banking. Prior to joining HDFC Life, Mr. Chaudhary worked as MD & CEO at Infosys BPO Ltd. Mr. Post this management change AXSB will have the youngest CEO in Mr. Amitabh Chaudhry, age 54 years, amongst all new private banks - though several banks are going to see a change in top management over next two years.

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

Maintain NEUTRAL. TP of Rs 542 (2x Mar-20 ABV of Rs 271). While AXSBs headline numbers seem encouraging, a deeper assessment suggests otherwise. Growth lagged comparable peers (domestic growth for ICICIBC at ~15% and BOB at ~20%) while margins expanded owing to a one-off (adjusted NIM down 9bps). Though overall fees (up merely 6% YoY) were lacklustre, retail fee growth (+20% YoY) saved the day.

ICICI Securities Ltd | Retail Equity Research Slippages moderated to | 4337 crore (| 16536 crore in Q4FY18). Accretion from the corporate book was at | 2218 crore, ~88% from exposure rated BB and below. Healthy recoveries and write-off led ~25 bps improvement in GNPA ratio at 6.52% Vulnerable book is now at | 12236 crore (2.5% of customer assets) with restructured asset at ~| 2847 crore & exposure to BB and below rated account at | 10396 crore. As per management, bulk of stress...