HDFC Securities' research report on Axis Bank
AXSB continued to build higher-than-expected provisions on its pro forma portfolio as it continued to search for stability in its back book coverage. The sustained build-up in standard asset provisions was a negative surprise. Although prudence is generally welcome, at 2.1% standard asset cover, the road to credit cost normalisation is longer than originally envisaged.
Outlook
We trim our FY21 full-year earnings estimates by ~13% and continue with our BUY recommendation with a revised target price of Rs 705.
For all recommendations report, click here
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