Axis Bank Ltd. share price target

Axis Bank Ltd. (AxisB) reported Q4FY17 numbers which came in line with market expectation. While, NII grew by 3.9% YoY, as net profit during the quarter declined by (-)43.1% YoY to Rs12,251 mn due to the high provisioning against the NPAs. Assets quality remained grim, however due to strong recovery and up-gradation, GNPA ratio reduced 22 bps to 5.0%. Meanwhile, the management remained cautious about resolution of stressed loans and expects credit cost to remain higher over 2% in FY18E. Q4FY17 result analysis: Dismal performance continued by AxisB as it reported...

AXSB's Q4FY17 earnings matched our estimates till operating profit line, however, lower than expected provisions led to 23.4% net profit beat. NIMs showed a spectacular 40bps QoQ expansion though 3.83% remains an unsustainable...

Axis Bank Ltd. reported major drop in Q4 FY17 net profit of 43%. The net profit stood at Rs 1225 cr for the quarter ended March, 2017 vs. Rs 2,154 cr for the same quarter in the previous year on account of higher provisioning for bad loans. However, total income of the bank has increased by 2% to Rs 11,168 cr for quarter under review vs. Rs 10,899 cr for the quarter ended March, 2017. Net Interest Income and Net Interest Margin: The Bank's Net Interest Income (NII) grew 4% YOY to 4,729 crores during Q4FY17 from 4,553 crores in Q4FY16. Net interest margin for Q4FY17 stood at 3.83%. NII for FY17...

AXSBs 4QFY17 earnings beat estimates, but only optically. The NIM improvement was led by a one-off benefit from write back of interest reversals (13bps). One-off recoveries/upgrades and higher write-offs kept GNPAs in check, despite high slippages (incl. the one-off cement exposure).

NII rose to Rs. 4728.6 Cr in Q4FY17 compared to Rs. 4333.73 Cr in Q3FY17. NII increased by 3.87% ( Rs. 176.01 Cr ) when compared with the same period last year.

Headline asset quality numbers like GNPA ratio were steady QoQ at 5.04% (| 21280 crore). Fresh slippages seemed slightly higher QoQ at | 4811 crore. However, of these slippages, ~| 1660 crore was on account of a cement exposure (on which the bank made 25% provision as asked by RBI), which was also upgraded in the same quarter. Thus, excluding this exposure, slippages were relatively lower QoQ. The watchlist declined 15% QoQ to | 9436 crore Fresh slippages primarily came from iron & steel sectors. Of the...

Though we continue to admire core operating performance and business franchise of Axis Bank, the current headwinds clearly indicate more pressure on profitability in the near-term. We believe that the Bank will continue to witness higher credit cost, which will keep its earning profile and return ratio subdued over next 4-6 quarters. Rolling over our estimates to FY19E, we reiterate our HOLD recommendation on the stock with an upwardly revised Target Price of...

ICICI Securities Ltd | Retail Equity Research Headline asset quality numbers like GNPA ratio jumped to 5.22% (| 20467 crore) from 4.17% in Q2FY17. Outstanding restructured book was at | 6109 crore (1.6% of total advances). Slippages were higher at | 4560 crore, led by ~| 2579 crore that slipped from watchlist while ~| 1631 crore were fresh slippages. The bank's watchlist fell 19.5% over the previous quarter and was at | 11091 crore. Total SDR & 5-25 were at | 1360 crore & | 2992 crore, respectively...