Sharekhan's research report on Axis Bank
Axis Bank has completed the acquisition of Citibank`s India consumer business and the deal is valued at Rs. 11,603 crore vs earlier disclosed acquisition price of Rs. 12,325 crore driven by some final adjustments. Tier-1 ratio would decline by ~180 bps after this transaction and the bank has indicated that it has comfortable CET-1 levels (~13.78%) to grow without any disruption. Bank is not expecting to approach the market anytime soon for equity capital raise. Management commentary did not suggest any further steep deterioration in customer retention and employee attrition going ahead but it remains a key monitorable from here on. We believe Citi business would be ROE Neutral in FY24 & FY25 for Axis Bank while ROE accretive starting from FY26E and it brings strong value proposition for the existing franchise. The stock currently trades at 1.6x/1.4x/ its FY2024E/FY2025E core BV estimates.
Outlook
We maintain our Buy rating on the stock with an unchanged PT of Rs. 1,140.
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.
