Motilal Oswal's research report on Axis Bank
Axis Bank (AXSB) reported a loss of INR57.3b led by an exceptional item of INR123.5b (net of tax) towards Citi’s acquisition, policy harmonization and other related costs. Excluding these one-offs, adjusted PAT came in at INR66.3b (+61% YoY, 10% beat), largely driven by a sharp reduction in provisions. NII/PPoP witnessed a miss with margin moderating 4bp QoQ to 4.22% (almost flat on an adjusted basis) in 4QFY23. Loan growth was healthy at 16% YoY and 7% QoQ (ex-Citi), fueled by strong growth across segments. Deposit growth too was healthy with an increase in CASA and retail deposits during the quarter. Fresh slippages moderated to INR33.8b, which coupled with healthy recoveries and upgrades led to an improvement in asset quality ratios. Restructured book was under control at 0.22% of customer assets in 4QFY23.
Outlook
We tweak our estimates slightly and expect AXSB to deliver RoA/RoE of 1.9%/ 18.1% in FY25. Retain BUY with a TP of INR1,100 (based on 1.8x Sep’24E BV).
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
