Axis Bank Ltd. share price target

AXSB reported a sharp improvement in asset quality, while net profit grew 25%YoY/68% QoQ to INR7.26b. NII stood at INR47.3b (~2.5% ahead of our estimates), representing 9% YoY growth. This occurred despite margin compression of 7bp QoQ (19bp contraction over FY17). Other income declined 24% YoY to INR25.93b due to weak treasury gains, even as core fees grew 24% YoY. This, coupled with a moderate rise in opex, led to a17% YoY decline in PPoP. Loan growth stood healthy at 21% YoY (+29% YoY in retail; +27% YoY in SME). Deposit base, however, declined by 2% QoQ, led by a fall in demand deposits.Reported CASA mix, thus, declined 140bp QoQ to 49% (46% on average basis)

Adjusted for divergences, slippages continue to stay elevated: Q3FY18 slippages were up 8.8% qoq compared to Q2FY18 slippages (adjusted for the Rs48.7bn divergence component). However, the higher slippages did not reduce the stressed assets pool', which comprises BB and below rated' assets (Rs161bn, +2% qoq). The NPL conversion rate from this pool has continued the pace of ~Rs25bn/quarter and the management has remained guarded in identifying a timeline for its slowdown. Recoveries & upgrades driven by 2 major accounts: AXSB recovered/upgraded Rs40.1bn NPLs, of which, up to Rs22.7bn were contributed by the divergent Steel and...

Axis Bank Ltd. (AxisB) Q2FY18 numbers came below our estimation with net profit plummeting 67% QoQ to Rs4,323.8 mn due to high provisioning and weak NII growth. The bank reported higher slippage of Rs89.4 bn and profitability declined due to high credit cost, however it reported strong growth in credit portfolio driven by healthy traction in retail advances. AxisB has approved its capital raising plan amounting to Rs116.3 bn which will help it to absorb credit costs and also...

Event: Axis Bank's (AXSB) board has approved a capital raising plan amounting to USD1.79b (INR116.26b) to provide the necessary growth capital to the bank and support asset quality clean-up. Of the approved amount, USD1.4b (INR90.63b) is proposed to be raised via preferential issue of equity shares at INR525/share, while the remaining USD396.1m (INR25.63b) would be raised via warrants, which can be converted into equity shares at INR565/share. Investing entities: Bain Capital will invest USD1.06b (INR68.54b) USD710m (INR45.94b) would be in the form of equity and the balance USD349.3m...

ICICI Securities Ltd | Retail Equity Research The board of Axis Bank has approved raising of capital via preferential allotment of shares and warrants to select entities. About | 11626 crore is proposed to be raised, of which | 9063 would be via preferential allotment at a price of | 525 per share and balance | 2563 crore via warrants at a price of | 565 per share. Bain Capital which had earlier evinced interest in acquiring stake in the bank is getting ~4.8% shares....

Maintain NEUTRAL with a TP of Rs 504 (2x Sept-19 ABV of Rs 252). After mild hopes of recovery in the last couple of quarters, AXSBs 2Q performance was abysmal. Slippages shot up to ~9% ann., an all time high led by RBI reclassification, LLP spiked 60% QoQ, even as PCR dipped 500bps (after utilising contingent provisions), and NIMs fell 18bps QoQ. Further, an additional Rs 158bn (3.9% of loans and 9% of corp loans) is still below the investment grade (BB and below). On the positive front, loan growth (16% YoY) revived and was broad-based, CASA (+24%) trends remain positive and fee growth was healthy QoQ (+8%).

Axis Bank registered a 1% rise in Interest income to Rs 11235.08 crore in the quarter ended September 2017. A 1% fall in interest expenses to Rs 6695.46 crore saw net interest income (NII) grow 1% to Rs 4539.63 crore....

Weak operating performance; asset quality woes deepen AXSB reported weak numbers, with net profit plummeting to INR4.32b (-67% QoQ), dragged by higher provisions and weak revenue growth. NII came in flat on a YoY basis (~4% miss), impacted by moderation in yields (33bp) and interest reversals on slipped accounts (~6bp). NIM thus shrunk to 3.45% from 3.63% in 1QFY18. Other income also remained tepid, resulting in 1% YoY growth in total revenues. Fresh slippages spiked to INR89.36b (9% annualized), driven by NPL divergence...

Revenue rose by 0.11% to Rs. 21958.1 Cr in Q1FY18 when compared to the previous quarter Revenue rose by 0.11% to Rs. 21958.1 Cr in Q1FY18 when compared to the previous quarter