Axis Bank Q1 Results Review - Downgrade To Hold On Margin Pressures, Asset Quality Deterioration: Systematix

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..Systematix Research Report.Axis Bank Ltd. reported Q1 FY25 PAT of Rs 60 billion (-15% QoQ, +4% YoY) which was a mixed bag of results. While on the one hand, margins remained stable margins vs expectation of decline due to credit-to-deposit ratio pressures, on the other hand, asset quality deteriorated leading to higher credit costs due to higher retail slippages. Other key highlights were:Gross Advances growth of 1.6% QoQ, 14% YoY was corporate loan growth of 5% QoQ while retail and SME growth was flat QoQ. Despite regulatory pressure to reduce CDR, deposits declined by -0.6% QoQ, +12.8% YoY mainly due to 3% qoq decline in CASA on seasonal outflow of CA deposits. On calculated basis, NIM remained flat qoq as higher funding costs were offset by higher leverage and higher investment yields.Other income declined by -14.5% QoQ (+4% YoY) due to weak fee income growth and lower trading income (due to higher base). Opex/assets declined to 2.48% (versus 2.59%) mainly due to lower other overheads. Gross /net non-performing asset at 1.5% / 0.3% increased by +11 bps / +3 bps QoQ and reported net credit costs increased to 0.97% versus 0.32% due to higher slippages mainly in the retail book.Overall CAR / CET-1 stood at 16.65% / 14.06% with net CET-1 accretion of 32bps.The bank delivered RoA/ RoE of 1.65% / 16.26%. .Click on the attachment to read the full report:.Axis Bank Q1 Results: Provisions Double, Asset Quality Worsens.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 Q1 Results Review - Downgrade To Hold On Margin Pressures, Asset Quality Deterioration: Systematix

The brokerage reduces its target multiple to 1.84x Sep’26 adjusted book value per share with a target price of Rs 1,342 factoring in lower growth and margins.

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Axis Bank Q1 Results Review - Downgrade To Hold On Margin Pressures, Asset Quality Deterioration: Systematix

The brokerage reduces its target multiple to 1.84x Sep’26 adjusted book value per share with a target price of Rs 1,342 factoring in lower growth and margins.

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