Axis Bank Q2 Results Review - Muted Business Growth; Credit Costs Normalising At Higher Levels: Dolat Capital

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..Dolat Capital Report.Axis Bank Ltd.’s operating profits (+24% YoY) benefited from higher treasury gains and contained opex. While favourable tax orders of Rs 5.5 billion were offset by Rs 5.2 billion of additional contingent provisions, return on asset exceeded expectations at 1.84%. Loan and deposit growth was muted at 2% QoQ each. Slippage at 1.8% was slightly elevated and NPA provision costs at 80 bps for H1 FY25 look high. Management highlighted that retail slippages, primarily unsecured retail, are a large part of slippages this quarter. Given the focus on the CD ratio, deposit growth will constrain loan growth in the near term. However, decline in integration costs and productivity gains is aiding opex ratios. The bank has no immediate plans to raise equity. We factor in lower growth and slightly higher credit cost assumptions, offset by lower opex. Maintain ‘Accumulate’ rating with an unrevised target price of Rs 1325, valuing the bank at 1.9 times Sep-26E price/adjusted book value against RoA/RoE of 1.7%/16%..Click on the attachment to read the full report:.Axis Bank Q2 Results Review - Growth Outlook Remains Bleak For FY25: Systematix.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 Q2 Results Review - Muted Business Growth; Credit Costs Normalising At Higher Levels: Dolat Capital

Slippage at 1.8% was slightly elevated and NPA provision costs at 80 bps for H1 FY25 look high, says the brokerage.

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Axis Bank Q2 Results Review - Muted Business Growth; Credit Costs Normalising At Higher Levels: Dolat Capital

Slippage at 1.8% was slightly elevated and NPA provision costs at 80 bps for H1 FY25 look high, says the brokerage.

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