Axis Bank Q1 Results Review - Weak Quarter Due To Asset Quality Drag: Prabhudas Lilladher

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..Prabhudas Lilladher Report.Axis Bank Ltd. saw a weak quarter as core profit after tax was 13.2% below our estimate driven by asset quality blip leading to rise in provisions QoQ by 37 basis points, miss on fees by 3.8% and higher opex. Loan growth was better, mainly led by corporate and deposit growth QoQ was driven by wholesale. Adjusting for IT refund impact of 6 bps, net interest margin improved by 8 bps QoQ to 4.03%. We don’t see any further leeway for NIM to expand since loan to deposit ratio is at 92% (+194 bps QoQ). While management attributed the rise in gross non-performing asset and provisions to timing difference leading to protracted recoveries and higher write-offs, net slippages spiked QoQ from 55 bps to 136 bps largely led by retail (including agri). Axis Bank's credit costs in remaining quarters of FY25 could normalise as recoveries improve. Due to lower recoveries for the system, we increase credit costs for FY25/26E by 12bps each to 55bps and cut core EPS by average 5%. We maintain multiple at 2.2 times and but due to earnings cut, we slightly reduce target price to Rs 1,425 from Rs 1,450. Retain ‘Buy’..Click on the attachment to read the full report:.Axis Bank Q1 Results Review - Net Interest Margins Stable; RoA Dipped Due To Higher Credit Cost: IDBI 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 Q1 Results Review - Weak Quarter Due To Asset Quality Drag: Prabhudas Lilladher

Axis Bank's credit costs in remaining quarters of FY25 could normalise as recoveries improve, says the brokerage.

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Axis Bank Q1 Results Review - Weak Quarter Due To Asset Quality Drag: Prabhudas Lilladher

Axis Bank's credit costs in remaining quarters of FY25 could normalise as recoveries improve, says the brokerage.

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