Axis Bank Q4 Results Review - Margins Expand 5bps QoQ; Treasury Gains Aid Earnings: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Axis Bank Ltd. reported healthy profit after tax beat at Rs 71.3 billion (up 7.6% YoY/17.4% QoQ), driven by healthy revenue growth and treasury gains. Net interest margins expanded 5 bp QoQ to 4.06% on a favorable asset mix even as funding cost pressure is likely to continue until H1 FY25. Loan growth was healthy at 14% YoY/3.5% QoQ, while deposits grew 12.9% YoY/6.3% QoQ. The CD ratio moderated to 90.3%. Fresh slippages declined to Rs 34.7 billion, whereas healthy recoveries and upgrades led to a decline in the gross non-performing asset ratio. Restructured book was under control at 0.16%.We raise our estimates while remaining watchful over cost and a high CD ratio at 90%. We estimate Axis Bank to deliver a 14.5% CAGR in loans over FY24-26. Accordingly, we estimate FY26 return on asset/return on equity of 1.8%/16.8%. We retain our Neutral rating with a revised target price of Rs 1,200 (1.7 times FY26E adjusted book value)..Click on the attachment to read the full report:.Axis Bank Q4 Results Review - Net Interest Margin Surprise; Treasury Gains Aid Earnings: Dolat Capital.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Axis Bank Q4 Results Review - Margins Expand 5bps QoQ; Treasury Gains Aid Earnings: Motilal Oswal

Credit-deposit ratio moderates to ~90%

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