research report on axis bank

Log In Get Free Account

• Health Insurance
• Equity Research Report Axis Bank Q4fy23

Contributor since: 2022

Send Message

Ashish Ghosh    

Ashish Ghosh is a research analyst for the global and Indian financial markets (macro/techno-funda). With more than 12 years of experience in the capital market, Ashish has been published in high-profile online media regularly. He holds a B.Sc. in Math along with NCFM certification for Technical and Fundamental analysis. Presently, Asis is working with iForex as a continuous freelancer financial analyst/content writer since 2017, analyzing mainly the global and Indian markets. You can have a glimpse of his works on his Twitter feed (asisjpg).

Articles: 85

Comments: 0

Follower: 18

Following: 0

Comments: 0 | Likes: 0 | Current Price: ₹ 1055.75

Equity Research Report: Axis Bank-Q4FY23

Axis Bank may report a +20% CAGR in core operating EPS for FY: 24-26 amid robust credit demand, NIM, NPA management, and domestic macro stability.

Company Overview, Business Model & Competitors:

Axis Bank is the 3 rd largest private sector bank in India, having 41M+ customers, and was formerly known as UTI Bank (1993-2007). The Bank offers the entire spectrum of financial services to customer segments covering Large and Mid-Corporates, MSME, Agriculture, and Retail Businesses, having around 6% market share of advances/loans and 5.1% deposits. The Overseas operations of the Axis Bank are spread over eight international offices with branches in Singapore, Dubai (at DIFC), and Gift City-IBU; representative offices in Dhaka, Dubai, Abu Dhabi, and Sharjah and an overseas subsidiary in London, UK. The international offices focus on Corporate Lending, Trade Finance, Syndication, Investment Banking, Liability Businesses, and Private Banking/Wealth Management offerings.

Axis Bank is one of the 1 st new generation private sector banks to have begun operations in 1994. The Bank was promoted in 1993, jointly by Specified Undertaking of Unit Trust of India (SUUTI) (then known as Unit Trust of India), Life Insurance Corporation of India (LIC), General Insurance Corporation of India (GIC), National Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd., and United India Insurance Company Ltd. The shareholding of Unit Trust of India was subsequently transferred to SUUTI, an entity established in 2003.

At a glance, for Axis Bank, almost 48% of revenue comes from retail banking, 24% from Treasury operations, 25% from corporate/wholesale banking, and 3% from others, while 99% of revenue comes from India (in INR). The main competitors of Axis Bank are other private bank giants like HDFC Bank, ICICI Bank, Kotak Bank, IndusInd Bank, Yes Bank, and also some PSBS (SBI, PNB), etc.

As of 31 st March 2023, the Bank had a network of 4,903 domestic branches and extension counters situated in 2,741 centers compared to 4,758 domestic branches and extension counters situated in 2,702 centers as of 31 st March 2022. As of 31 st March 2023, the Bank had 15,953 ATMs and cash recyclers spread across the country

Key management: Key person: Amitabh Chaudhry (MD & CEO)

Board Members:

Key Shareholders: FIIs (50.70%), DIIs (31.30%), LICI (7.96%); OTHERS (7.62%), and GDRs (2.42%)

Summary of latest report card: Q4FY23 and FY23 (Consolidated: INR 100 Cr. =1B)

·          NII Rs.120.49B vs. 117.49B sequentially (+2.56%) and 90.46B yearly (+33.20%)

·          Other non-interest operating income (including fees, trading, and misc. income) Rs.54.96B vs. 52.41B sequentially (+4.86%) and 47.92B (+14.68%)   

·          Total operating income Rs.175.45B vs. 169.90B sequentially (+3.27%) and 138.38B yearly (+26.79%)

·          Total operating expenses Rs.74.51B vs. 67.76B sequentially (+9.97%) and 65.50B yearly (+13.76%)

·          PPOP Rs.100.94B vs. 102.14B sequentially (-1.17%) and 72.89B yearly (+38.49%)

·          Net bad loan (W/O-Recovery) Rs.16.06B vs. 10.44B sequentially (+53.83%) and 9.78B yearly (+64.21%)

·          EBTDA (Core Operating Profit: PPOP-Net Bad Loan) Rs.84.88B vs. 91.70B (-7.44%) and 63.05B (+55.22%)

·          NPA/SR provisions Rs.3.08B vs. 14.46B sequentially (-78.67%) and Rs.9.84B yearly (-68.67%)

·          EBITDA (Notional profit after NPA provision) Rs.97.86B vs. 87.69B sequentially (+11.60%) and 63.05B yearly (+55.72%)

·          EBTDA/Share (Core operating EPS) Rs.27.59 vs. 29.82 sequentially (-7.49%) and 20.56 yearly (+34.19%)

·          EBITDA margin 55.78% vs. 51.61% sequentially (+4.16%) and 45.56% yearly (+10.22%)

·          EBTDA margin 48.38% vs. 53.98% sequentially (-5.60%) and 45.60% yearly (+2.78%)

·          Adjusted EPS (after adjusting one time/exceptional acquisition cost of Citi Consumer Business) Rs.23.17 vs. 20.12 sequentially (+3.04%) and 14.39 yearly (+6.78%)

·          One time exceptional expense of Rs.124.90B was for acquisition cost for Citi India Consumer business.

·          Axis Bank completed the acquisition of Citibank India's Consumer Business, comprising loans, credit cards, wealth management, and retail banking operations.

·          This strategic acquisition strengthens Axis Bank's position among large private lenders in India and will help accelerate its premium market share growth.

·          The acquisition was carried out in a record time of seven months post-receipt of CCI approval.

·          The Bank made prudent accounting choices about one-time non-recurring items aggregating to Rs.124.90B comprising (i) full amortization of Intangibles and Goodwill, which is equal to the value of purchase consideration paid/payable on the acquisition of Citibank India Consumer Business; (ii) charged completely to the Profit & Loss account, the impact of policy harmonization on operating expenses (Rs.1.29B) and provisions; and (iii) one-time stamp duty on the acquisition (Rs.1.80B)

·          Will incur Citi integration expenses for around Rs.15B over the next 18-month period

Amitabh Chaudhry, MD & CEO of Axis Bank, said:

"With the acquisition of Citibank India Consumer Business, we welcomed over 2.4 million new customers and ~3200 employees to the Axis family. The deal bolsters our market presence, especially in the growth of our premium market share across wealth and cards. We are working on the synergies, some of which are already yielding favorable outcomes. During the quarter, we also made significant progress on Bharat Banking and Digital, two of our priority areas. Overall, we closed the year with a strong sense of purpose and meaningful strides towards building a strong, sustainable franchise.”

·          Axis Bank has further built on its digital agenda. It launched the "MicroPay" solution for accepting digital payments in partnership with Ezetap by Razorpay and MyPinpad. This 'PIN on Mobile' solution allows merchants to convert their smartphones into a Point-of-Sale (POS) terminal, simplifying digital payments and enhancing customer experience.

·          The Bank now facilitates real-time cross-border transactions through the UPI Network in collaboration with the Reserve Bank of India (RBI) and the Monetary Authority of Singapore (MAS). The joint initiative aims to

provide fast and cost-effective cross-border remittance transfers by linking India's Unified Payments Interface (UPI) with Singapore's PayNow. The Bank also launched UPI LITE for seamless small-ticket transactions.

·          Reported NIM 4.22% vs. 4.26% sequentially and 3.49% yearly

·          Reported cost of funds 4.75% vs. 4.34% sequentially and 3.83% yearly

·          Gross advance Rs.8.45T vs. 7.62T sequentially (+10.92%) and 7.08T yearly (+19.40%)

·          Healthy loan growths across all segments, along with steady growth in deposits (+15.20% yearly)

·          Almost 47% is CASA deposits, up +2.15% y/y and +2.61% q/q

·          Retail loans grew +22% yearly and +14% sequentially to Rs.4.88T, almost 58% of net advances; SME loan book Rs.0.93T (11%) and corporate loan book Rs.2.65T (31%)

·          The secured loan was around 80% of the net advance led by home loans (32% of the retail book)

·          Almost 89% of corporate loan book belongs to A- and above rated

·          GNPA Rs.186.04B vs. 199.61B sequentially (-6.80%) and 218.22B yearly (-14.75%)

·          PCR 80.87% vs. 80.81% sequentially and 74.74% yearly

·          Provision and contingencies (NPA) for Q4FY23 stood at Rs.3.06B

·          Specific loan loss provisions for Q4FY23 stood at Rs.2.70B

·          The Bank has not utilized COVID provisions during the quarter

·          The Bank holds cumulative provisions (standard + additional other than NPA) of Rs.119.28B at the end of Q4FY23. It is pertinent to note that this is over and above the NPA provisioning included in the PCR calculations. These cumulative provisions translate to standard asset coverage of 1.42% as of 31 st March 2023

·          On an aggregated basis, the provision coverage ratio (including specific + standard + additional + Covid provisions) stands at 145% of GNPA as of 31 st March 2023

·          Credit costs/Gross Advance 1.75% vs. 2.06% sequentially and 2.01% yearly

·          Credit costs/share Rs.0.88 vs. 1.42 sequentially (-38.11%) and 6.73 yearly (-86.96%)

·          Recoveries from written-off accounts for the quarter were Rs.8.23B

·          FY23 core operating EPS Rs.99.40 vs. 66.88 in FY22 (+48.63%)

·          Well-capitalized with a self-sustaining capital structure; adequate liquidity buffers.

·          Overall capital adequacy ratio (CAR) stood at 17.64%, with a CET 1 ratio of 14.02%

·          Retaining a strong position in Payments, Digital Banking, and also credit cards (after Citi Bank India consumer business acquisition)

·          Declining NPA and slippages trend

·          Bank’s domestic subsidiaries6 continue to deliver steady performance; FY23 profit at around Rs.1,304 crores, with a return on investment of 50%

·          Axis Finance FY23 PAT grew 30% YOY to Rs.4.75B; asset quality remains stable, and CAR is healthy at 20.5%

·          Axis AMC FY23 PAT grew 16% YOY to Rs.4.15B

·          Axis Capital FY23 PAT stood at Rs.1.42B

·          Axis Securities FY23 PAT at Rs.2.03B; broking revenue grew by +9% to Rs.7.24B in FY23; +28% growth in new clients addition

·          The book value of the Bank’s Investments portfolio as on 31 st March 2023 was Rs.2.89T, of which Rs.2.28T was in government securities, while Rs. 0.55T was invested in corporate bonds and Rs.0.06T in other securities such as equities, mutual funds, etc. Out of these, 73% are in Held till Maturity (HTM) category, while 24% of investments are Available for Sale (AFS), and 3% are in Held for Trading (HFT) category.

·          The Bank issued 1.13M new credit cards in Q4FY23. The Bank has been one of the highest credit card issuers in the country over the last three quarters and has gained an incremental CIF market share of 17% in the last six months (as per RBI report)

·          Wealth Management Business – Burgundy: The Bank’s wealth management business is among the largest in India, with assets under management (AUM) of Rs.3.57T at the end of 31 st March 2023.

·          Burgundy Private, the Bank’s proposition for high and ultra-high-net-worth clients, covers 11,009 families, up from 3,490 families in the last year. The AUM for Burgundy Private increased 58% YOY to Rs.1.37T

·          Strong momentum in Retail Banks across all businesses with an emphasis on digital banking

·          Improving NIM amid higher interest rate regime as 68% of loans belong to floating interest

·          The bank continues to stay on course in three core areas of execution of the GPS strategy, namely:

A. Embedding a performance-driven culture

B. Strengthening the core

C. Building for the future

·          Lower employee expenses sequentially (-5%) are due to higher variable payments (incentives) made in the last quarter (one tome-exceptional-no longer applicable in current quarter)

·          Lower core operating margin sequentially is due to lower trading income (range bound market) and integration expenses for Citi Bank India consumer business acquisition.

·          Citi's business acquisition is ROE positive, although various cost ratios may remain sticky unless the Citi integration phase is over.

·          Adequate regulatory capital buffer (above minimum threshold)

·          The bank is well placed in the current macro environment while continuing to closely monitor the geopolitical environment, inflation both domestic and international, liquidity risks and their impact on the cost of funds, resultant policy action, and its impact on the bank’s business and also clients businesses

·          Overall, the bank is comfortable and cautiously optimistic about macro headwinds and the Russia-Ukraine war

·          Q4FY23 report card includes Citi P/L for Mar’23

·          Expecting 12-13% credit growths in FY24 against +19.50% in FY23, while deposit growth remains unchanged at around +15%

·          The bank may open around 500 more branches in FY24 in a calibrated way in conjunction with a digital banking strategy to mop up more deposits.

·          Slightly lower NIM sequentially (4.22% vs. 4.26%) is due to a +13% higher average LCR maintained throughout the quarter (despite higher loan spreads by around +4 bps)

·          Excess LCR (129% vs. 116-121%) and SLR margin are due to the requirement of higher regulatory capital for Citi Bank India consumer business acquisition; it will be normalized by the next two quarters (Q3FY24)

·          Being just a 1-month old (with Axis Bank), there was no impact of NPA/write-off amount for the Citi business.

·          Remains committed to adhering to earlier guidance of 2% credit costs/asset by FY25, although there may be some impact in FY24 for Citi India consumer business acquisition; short/medium term guidance of credit costs 2.25-2.40%

·          NIM for FY23 was at 4.02% and 4.22% for Q4FY23, largely in line with guidance despite the rising cost of deposit

·          Consolidated ROE of around 18.84% for FY23 is also in line with earlier guidance.

·          Aiming for a healthy margin (NIM), which is sustainable in the long term without going into intense competition with rivals; Beliefs in a granular model of business with consistent trend sequentially over the next five years.

·          Housing/mortgage loan is now a crowded area where NIM is low

·          Axis Finance is functioning as an NBFC quite well

·          Focus on maintaining lower credit costs by ensuring quality asset standards rather than chasing blindly behind higher NIM; i.e.; the bank is providing credit to only good quality/prime borrowers rather than subprime.

·          The senior management team is taking care of the synergy between the newly acquired Citi India Consumer business with Axis Bank.

·          The total asset/loan book of Citi India acquired is around Rs.0.29T, which is around 3.5% of the total loan book at Axis Bank; out of this, around Rs.0.09T belongs to Citi Bank credit cards (largely unsecured), and the rest of mortgage, CV and auto loans (secured)

·          Bank will ensure no internal competition with newly acquired Citi customers and also the quality of their credit card business.

·          Overall, the bank remains cautiously optimistic about global macro-headwinds, higher bond yields, and consequent lower bond prices/huge MTM losses in the HTM bond portfolio (like in the U.S. regional banking crisis recently)

·          But the bank is quite confident about India’s stable micro/policy, which is ensuring the orderly movement of bond yield/prices in a predictable range, ensuring a manageable HTM bond portfolio.

·          Bank sees consistent growth in Indian credit demand along with equivalent/moderate deposit growth.

·            Excluding the Citi portfolio, overall loan book growth was muted (in line with the industry instead of +5% guidance/aspiration) because of intense competition in wholesale banking/corporate loans and mortgages, where the bank didn’t cut rates to get loan accounts (as per internal policy); but the bank manages to recover in Q4 due to the strength of its platform, product portfolio, and digital drive.

·            Around 42% of fixed-rate loan books will mature by FY24, which will ensure proper pricing of the book afterward.

·          SME loan book is growing very well despite higher borrowing costs (as the impact of higher RBI repo rate has been fully passed on), but the bank is taking adequate precautions with appropriate precaution

·          Corporate loan demand is quite robust across multiple sectors (iron & steel, commercial real estate, various infra & road projects, and NBFCs; but corporates are now also using their own surplus/free cash flows (after recent deleveraging) to fund CAPEX rather than too much dependency on loans.

Fair Valuation: Average of EPS+BVPS+OCFS

Axis Bank: Rs.937-1020-1177-1360-1574 for FY: 23-24-25-26

Axis Bank reported a core operating EPS (PPOP-Bad Loan) of around Rs.99.40 against 66.88 in FY222, which surged by +48.63%. During the COVID disruption times (2020-22), the bank primarily focused on NPA management rather than business/credit growth. Overall average growth in core operating EPS between FY18-23 is around 42%.

Now in FY23-22, after COVID, Axis Bank reported above pre-COVID trend (18-20%) in core operating EPS growth to around +48.63% due to the normalization of the COVID situation- the full reopening of the economy; huge infra and targeted rural/agri stimulus by the government; increasing secured lending rather than unsecured lending, relatively lower base, robust NIM (yield curve steepening amid rate hikes) and increasing recovery for prior write off accounts.

Previously, Axis Bank indicated credit growth of around 20% in FY23-26, along with a core operating margin of around 60%. Now considering FY23 growth, Citi India's consumer business/loan portfolio, even after synchronized global stagflation/slowing economic growths and some spillover effect of that in India, RBI tightening, higher borrowing costs, higher inflation/lower discretionary spending, and possible higher NPA, 15-20% CAGR of core operating EPS may be appropriate (on the conservative side) rather than 40-50%.

Axis Bank is cautiously optimistic about overall business growth amid global/local economic slowdown, higher inflation/macro headwinds, higher borrowing costs, and lower discretionary spending, but Indian macro is also exceptional. Also, Indian corporates are now almost deleveraged, thus expecting healthy loan growth, not only in the business segment but also households amid a thrust on branch expansions and digitalization.

Thus considering 20% average growth (CAGR) between FY24-26 in EPS (average PE 10), 10% CAGR in BVPS (average PB 2), and 15% CAGR in OFCS (average multiple 10), the average fair value (EPS+BVPS+OCFS) may be around Rs 1020-1177-1360 for FY: 24-26; current fair value is around Rs.808/-. As the financial market generally discounts 1Y earnings/EPS in advance, Axis Bank may scale 1020/- by Dec’23, 1177/- by Mar’24, and 1360/- by Mar’25.

Treatment of bad loans in bank’s P/L:

NPA provision is only an accounting entry/provision (like depreciation); it’s not a cash outflow. Banks generally write off a chronic NPA/defaulting loan account from its book but try to recover the same directly or indirectly through some compromise settlement, equivalent to at least the full principal amount, sacrificing full or part unpaid accumulated interest. This process is called bank recovery (by some agency or direct bank) and may take even 5-10 years for a full and final settlement of a large write-off NPA account (bad loan).

Every year/quarter, the bank shows NPA write-off + NPA sold and also NPA cash recovery; the difference is bad loans. In the case of Axis Bank or most other banks, this is generally EPS positive nowadays (write back). In the case of Axis Bank, it was 0.88/per share in Q4FY23 against 1.42 sequentially and 6.73 annually. In reality, write-off and waive-off are two different accounting entries as the former is provisional, while the latter is a permanent loss in nature (after a bad loan turned non-recoverable loan). Banks generally do not waive off any bad loan account until it is sold to any ARC with a discount or becomes fully unrecoverable.

Technical view: Axis Bank (LTP: 958 as of 23/06/2023-EOD)

For short/medium-term trading purposes:

Looking ahead, whatever may be the narrative, technically, Axis Bank has to sustain above 1005 for the next leg of rally to 1050/1075-1095/1115* and further 1145-1180* in the coming days (bull case scenario); on the slip side, sustaining below 990-970, Axis Bank may further slip to 945*/920-900/880-835/815* and 770/710*-615/555* levels in the coming days (bear case scenario). Investors may accumulate Axis Bank around 945-815-710 levels.

P&L Analysis (QLY): Axis Bank

P&L Analysis (YLY): Axis Bank

B/S Analysis (YLY): Axis Bank

B/S Ratios and BVPS analysis (YLY): Axis Bank

C/F Analysis (YLY): Axis Bank

I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Stocx Research Club). I have no business relationship with any company whose stock is mentioned in this article.

ALL DATA FROM THE COMPANY WEBSITE

I am not a SEBI Registered individual/entity and the above research article is only for educational purpose and is never intended as trading/investment advice.

Updated : Apr, 2024

Nifty may come under stress on growing election unce...

Dow and Nifty Future recovered on Friday as Iran downplayed the Israel retaliation; India may be heading for a hung Parliament as BJP may not get over 250 seats alone

Author : Ashish Ghosh

The Rise of Digit Insurance and Its Journey

Mr. Kamesh Goyal founded Digit Auto Insurance in 2016. The company, Digit Insurance, focuses on streamlining insurance procedures and providing quick claim settlements. It is India's first digital general insurance provider.

Author : Nikhil Singh

Nifty gained almost 30% in FY24 on positive global c...

Depending on likely poll outcome and various scenarios, Nifty may scale 23500-24500 by FY25, while may also correct to 20300-19500 (if BJP fails to get min 273 seats alone)

Equity Research: Honasa Consumer Ltd.

Honasa Looks attractive with higher growth potential and increasing CAGR.

Author : Shalom Martin

USDINR may scale 86 soon as RBI may shift stance and...

RBI has to lower borrowing costs of the government/economy to promote double-digit GDP growth for the next 25 years with below 4% core CPI

Updated : Mar, 2024

Fino Paytech Ltd: Revolutionizing Financial Inclusio...

Financial services provider Fino Ltd. is involved in a number of industries. A division of Fino Ltd, Fino Payments Bank Ltd provides a variety of financial services and products, including internet banking, savings accounts, loans, credit and debit car...

Updated : Jun, 2022

Equity Research Report: Sakar Healthcare

Sakar Healthcare Ltd is engaged in manufacturing of pharmaceutical formulations in the form of liquid injectables, tablets/ capsules, oral liquid syrups, dry powder injectables and syrups. Presently, its domestic sales accounts for 31% of revenues and ...

Author : Akshita

EQUITY RESEARCH REPORT: NEWGEN SOFTWARE

Newgen Software Technologies is a global software Company and is engaged in the business of software product development including designing and delivering end-to-end software solutions covering the entire spectrum of software services from workflow au...

Nifty and Bank Nifty Tumbles Due to Weak Global Cues...

Nifty and Bank Nifty tumbles due to weak global cues lead by higher inflation data, higher crude oil prices and weakening currency.

Equity Research Report: Shree Renuka Sugar

Shree Renuka Sugars is a global agribusiness and bio-energy corporation. The Company is one of the largest sugar producers in the world, the leading manufacturer of sugar in India, and one of the largest sugar refineries in the world.

Updated : Jul, 2022

Equity Research : Tata Consumer Products Limited

TCPL future ambitions remain aggressive, At 17% EPS CAGR over FY22-25e, TCPL should deliver industry-leading growth within indian FMCG.

Equity Research: Birlasoft Ltd

Birlasoft, a small-cap IT company, has an upside potential of 35%. The company’s repeated demonstration of ‘walking the talk’ makes us believe that it is on track to achieve its stated target of USD1bn revenue by FY25E.

Updated : Jan, 2024

Initial Coverage: IndusInd Bank

IndusInd Bank Ltd is in banking and para-banking services. The Bank is targeted on accepting deposits, which includes financial savings debts, current accounts and fixed deposits, and banking solutions. The Bank is engaged in granting loans to various ...

Updated : Oct, 2023

Equity Research: Axis Bank

Axis Bank is one of India's leading private sector banks, recognized for its diverse range of financial services, commitment to technological innovation, and a vast network of branches and ATMs. Established in 1993, the bank has rapidly expanded its op...

Author : Mayur

EQUITY RESEARCH: CSB Bank Ltd

CSB Bank Ltd presents numerous banking products and services for small and medium organizations, retail, and NRI clients in India. It operates through 4 segments: Treasury, Corporate/Wholesale Banking, Retail Banking, and Other Banking Operations. The ...

Updated : Jul, 2023

Research report on Ujjivan Small Finance Bank

Ujjivan small finance bank has reported strong earnings of FY 2022-23, with increase of 49% in net profits over past FY. This report contains detailed research on Ujjivan small finance bank, covering its key fundamentals and technicals.

Author : ABHIJAY PALIWAL

Updated : Jun, 2023

Updated : Feb, 2023

How much more heat is left in Karur Vysya Bank?

Customer-centric approach and diverse suite of offerings are expected to lend support to Karur Vysya Bank. In commercial banking group, Karur Vysya Bank is focused to adopt cluster-based approach to cater to MSME market specially in agro-based industri...

Author : TheAsianInvestor

Add Comments

View more.....

Sharescart: India's #1 Marketplace to Find Detailed Research Reports

Please login, modal title, join in the club and never miss a valuable research.

• Share Market News
• e-ATM Order
• FindYourMojo
• Relax For Tax
• Budget 2024
• Live Webinar
• One Click Mutual Fund
• Retirement Solutions
• Execution Algos
• One Click F&O
• Apply IPO through UPI
• Life Insurance
• Health Insurance
• Group Health Insurance
• Bike Insurance
• SME Insurance
• Car insurance
• Home Insurance
• Sovereign Gold Bonds
• New Bonds on Offer
• Government Securities
• Exchange Traded Bonds
• ICICI Bank FD
• Top Performing NPS Schemes
• NPS Calculator
• NPS Important FAQ and Disclosures
• Equity Trending News
• Self learning
• Customer Service
• Corporate Services
• Open Account
• Masters of the Street
• Features and Products
• Will Drafting
• Goal Planner
• Retirement Planning
• Brokerage Fees and Charges
• Business Partner
• Business Partner Opportunity
• Business Partner Earning Calculator
• Business Partner App
• Partner Universe
• Insurance – POSP
• Global Invest
• Company Snapshot
• Report Details

Axis Bank Ltd Research Report Q3FY21

• SECTOR : Banks
• BSE : 532215
• NSE : AXISBANK

Chg: 1.8 (0.17 %)

Entry Price

Recommend date.

Balance sheet strength to curb earnings volatility… For Q3FY21, Axis Bank posted a mixed set of results on the operating front as profits were slightly below our estimates owing to higher opex and provisions. Asset quality saw a small blip but the bank has sufficient provisions to absorb any shock and smoothen earnings. NII for the bank was up 14.3% YoY at | 7373 crore, a slightly slower trajectory than past few quarters. This was account of modest credit growth and interest reversal. Margins were steady at 3.59%. Excluding interest reversal, the same would have been at 3.89%. Other income was flattish at | 3776 crore, owing to tepid fee income growth (5% YoY) and 29% YoY decline in treasury income. Operating expenses for the quarter were up 19.3% YoY mainly due to increments in salary and, thus, gratuity adjustments. Provisions were at | 4604 crore (up 32.7% YoY) of which | 3899 crore was towards proforma NPA. As a result of higher provisions and opex, PAT for Q3FY21 was down 36.4% YoY to | 1117 crore. Asset quality performance was slightly weak though headline NPA numbers showed improvement, due to Supreme Court order. Proforma NPA increased sequentially reflecting true picture with proforma GNPA and NNPA increasing 27 bps and 16 bps QoQ to 4.55% & 1.19%, respectively. This was despite a higher write-off of | 4242 crore. Also, ~84% of proforma slippages came from retail book. Restructured book was at | 2709 crore (0.45% of loans).

Copyright© 2022. All rights Reserved. ICICI Securities Ltd. ®trademark registration in respect of the concerned mark has been applied for by ICICI Bank Limited

• Company Reports

Axis Bank Ltd (AXISBANK) - Financial and Strategic SWOT Analysis Review

SWOT Analysis

• ID: 2965515
• Description

Table of Contents

• Companies Mentioned

Related Topics

• Purchase Options
• Ask a Question
• Recently Viewed Products

The profile contains critical company information including:

• Business description - A detailed description of the company’s operations and business divisions.
• Corporate strategy - Analyst’s summarization of the company’s business strategy.
• SWOT Analysis - A detailed analysis of the company’s strengths, weakness, opportunities and threats.
• Company history - Progression of key events associated with the company.
• Major products and services - A list of major products, services and brands of the company.
• Key competitors - A list of key competitors to the company.
• Key employees - A list of the key executives of the company.
• Executive biographies - A brief summary of the executives’ employment history.
• Key operational heads - A list of personnel heading key departments/functions.
• Important locations and subsidiaries - A list and contact details of key locations and subsidiaries of the company.
• Detailed financial ratios for the past five years - The latest financial ratios derived from the annual financial statements published by the company with 5 years history.
• Interim ratios for the last five interim periods - The latest financial ratios derived from the quarterly/semi-annual financial statements published by the company for 5 interims history.

Axis Bank Ltd Key Recent Developments

Key benefits of buying this profile include:.

• The profile analyzes the company’s business structure, operations, major products and services, prospects, locations and subsidiaries, key executives and their biographies and key competitors.
• The company’s core strengths and weaknesses and areas of development or decline are analyzed and presented in the profile objectively. Recent developments in the company covered in the profile help you track important events.
• Opportunities that the company can explore and exploit are sized up and its growth potential assessed in the profile. Competitive and/or technological threats are highlighted.
• Financial ratio presented for major public companies in the profile include the revenue trends, profitability, growth, margins and returns, liquidity and leverage, financial position and efficiency ratios.
• Key elements such as SWOT analysis, corporate strategy and financial ratios and charts are incorporated in the profile to assist your academic or business research needs.
• Axis Bank Ltd - Key Facts
• Axis Bank Ltd - Key Employees
• Axis Bank Ltd - Key Employee Biographies
• Axis Bank Ltd - Major Products and Services
• Axis Bank Ltd - History
• Axis Bank Ltd - Company Statement
• Axis Bank Ltd - Locations And Subsidiaries
• Head Office
• Other Locations & Subsidiaries
• Company Overview
• Axis Bank Ltd - Business Description
• Business Segment: Corporate and Wholesale Banking
• Business Segment: Corporate/Wholesale Banking
• Performance
• Business Segment: Other Banking Business
• Business Segment: Retail Banking
• Business Segment: Treasury
• Geographical Segment: Domestic
• Geographical Segment: International
• Axis Bank Ltd - Corporate Strategy
• Axis Bank Ltd - SWOT Analysis
• SWOT Analysis - Overview
• Axis Bank Ltd - Strengths
• Axis Bank Ltd - Weaknesses
• Axis Bank Ltd - Opportunities
• Axis Bank Ltd - Threats
• Axis Bank Ltd - Key Competitors
• Financial Ratios - Annual Ratios
• Performance Chart
• Financial Performance
• Financial Ratios - Interim Ratios
• Financial Ratios - Ratio Charts
• Axis Bank Ltd, Recent Deals Summary
• Sep 02, 2021: Adani Green Energy continues to ramp up focus on ESG: Raises USD 750 Mn to fully fund equity needs for its under construction pipeline
• Methodology
• Ratio Definitions
• About the Publisher
• Contact the Publisher
• Axis Bank Ltd, Key Facts
• Axis Bank Ltd, Key Employees
• Axis Bank Ltd, Key Employee Biographies
• Axis Bank Ltd, Major Products and Services
• Axis Bank Ltd, History
• Axis Bank Ltd, Other Locations
• Axis Bank Ltd, Subsidiaries
• Axis Bank Ltd, Key Competitors
• Axis Bank Ltd, Annual Ratios
• Axis Bank Ltd, Interim Ratios
• Currency Codes
• Capital Market Ratios
• Equity Ratios
• Profitability Ratios
• Cost Ratios
• Liquidity Ratios
• Leverage Ratios
• Efficiency Ratios
• Axis Bank Ltd, Performance Chart (2018 - 2022)
• Axis Bank Ltd, Ratio Charts

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

• Canara Bank
• Bank of India
• Bank of Baroda
• State Bank of India
• Punjab National Bank

ASK A QUESTION

We request your telephone number so we can contact you in the event we have difficulty reaching you via email. We aim to respond to all questions on the same business day.

Request a Quote

YOUR ADDRESS

YOUR DETAILS

PRODUCT FORMAT

DOWNLOAD SAMPLE

Please fill in the information below to download the requested sample.

• AXIS BANK LTD.
• SECTOR : BANKING AND FINANCE
• INDUSTRY : BANKS

Axis Bank Ltd.

NSE: AXISBANK | BSE: 532215

Mid-range Performer

1055.75 1.80 ( 0.17 %)

52W Low on Apr 28, 2023

8.4M NSE+BSE Volume

NSE 23 Apr, 2024 3:31 PM (IST)

• Share on Facebook
• Share on LinkedIn
• Share via Whatsapp

Operating Revenue TTM

High in industry

Net profit TTM

Net Profit Margin TTM %

Revenue Growth (TTM)

Below industry Median

Net Profit TTM Growth %

Negative Net Profit TTM Growth %

Axis Bank Ltd. Quarterly Results and Financial Statement as of today

• Supplementary
• All Courses
• Free Resources
• Research Reports
• Economic Calendar
• Company Movement
• Market Updates
• Advance Investment Banking Program
• Chartered Financial Analyst Program
• Complete Finance Program
• Option Trading Program
• All Programmes
• Finance Jobs
• Latest Analysis

Return On Equity

Earning per share, publish date: 18-may-2023.

Update Date: 21-Nov-2023

Procapitas simplifying finance.

18-May-2023

Ine238a01034, financial services, axis bank limited, stock information, price earning (ttm), dividend yield (%), return on assets (roa), net npa (%), gross npa (%), price chart.

Volume Traded

1,36,13,627, current price, previous value, today low/high, 912.60/929.50, 52 week low/high, 618.25/970.00, shareholding pattern, majority shareholders, pledged promoters holdings, mutual fund, held in 36 schemes (23.22%), held by 2 fiis (0%), promoters with highest holdings, life insurance corporation of india (8.17%), highest public shareholder, sbi long term advantage fund - series vi (4.83%), individual investors holdings, 65444152454 : jobaaj.com.

Axis Bank Limited offers a range of financial goods and services. Treasury, retail banking, corporate/wholesale banking, and other banking business are its four operating segments. The Treasury segment engages in trading activities, derivative trading, and foreign exchange operations in addition to investments in equity, mutual funds, corporate and governmental debt, and equity and equity-related assets.

The Retail Banking section provides loan services to individuals and small businesses, as well as liability products, card services, internet banking, mobile banking, ATM services, depository, financial consulting services, and NRI services. The corporate consulting, placements and syndication, project assessments, capital market-related, and cash management services are all provided by the corporate/wholesale banking section.

The business runs a number of branches, ATMs, and recyclers throughout India. Additionally, it maintains a global presence through branches in Singapore, Dubai, and Gift City, India, as well as representative offices in Dhaka, Dubai, Abu Dhabi, and Sharjah.

UTI Bank Ltd was the company's previous name till July 2007,when it changed to Axis Bank Limited. Based in Mumbai, India, Axis Bank Limited was established in 1993.The Bank has developed a solid retail franchise over the past ten years with the help of its distribution network, substantial deposit client base, and strong data analytics skills, which have allowed them to expand its business during a difficult time.

FINANCIAL INFORMATION

Source: Company financial Report

For the third quarter and nine months ending December 31, 2022, Axis Bank Limited released earnings results. The company posted a third-quarter net income of INR 61,873.8 million, up from INR 39,569.5 million in the same period last year. Basic earnings per share from ongoing operations increased from INR 12.9 to INR 20.13. Comparatively to a year before, diluted earnings per share from continuing operations increased to INR 19.88 from INR 12.86. Net income for the nine months increased from INR 97,015.6 million to INR 161,803 million. Basic earnings per share from ongoing operations increased from INR 31.64 to INR 52.67. The diluted earnings per share from continuing operations increased from INR 31.54 to INR 52.48.

SHAREHOLDING PATTERN

SHAREHOLDING COMPARE (% Holding)

COMPARE VALUATIONS WITH PEERS

Axis Bank reached a crucial turning point in its history in the fiscal year 2022.

Through yet another difficult year, their 85,500+ team members shown remarkable dedication to provide crucial services as Bankers to the economy at large, keeping their promise to their stakeholders to "Dil Se Open.

With the help of their extensive deposit client base, extensive distribution network, and powerful data analytics skills, the Bank has developed a strong retail franchise over the past ten years, allowing them to expand their business during a difficult moment.

As a result of numerous significant transformation and technological initiatives, their retail advances the book increased by 21% over the course of the year, driven primarily by a robust 49% growth in disbursements that reached new all-time yearly highs.

As they concentrated on aggressively scaling up the segment with significantly lower risks thanks to their cutting-edge product offerings and partnerships-led Known to Bank strategy, they continued to increase their market share in the cards and payments businesses.

They have invested significantly in developing digital and technological capabilities over the past few years, as well as in personnel and important transformational bets for their organisations' future.

Domestic retail loans increased by 21% to 3,97,568 crores in fiscal 2022, largely due to the secured product offerings of small business banking, house loans, and loans against property.

Disbursements to unsecured products increased in tandem with a rise in personal loan disbursements to the salaried group.Because to their solid partnerships and the over 140 million KTB customers, their unsecured retail loan book will keep expanding over the coming years.With the key transformation projects in place, their consumer acquisition improved, adding 8.6 million new accounts during the year, up 29% year over year.

ProCapitas.com - Simplifying Finance!

Source: National Stock Exchange

Axis Bank Ltd. is trading below the 5 day, 20 day, 50 day, and 100 day moving averages, it is trading above the 200 day moving averages.At the time of the closing of the market on 18-May-23 Axis Bank Limited 's stocks were trading at a price of INR915.65, stock noted an increase of approximately INR 0.85 or 0.09 %as compared to the previous day’s closing price which was INR 914.80 Approximately, 13m Axis Bank Limited's stocks were traded in the market on the day.

Having an Issue!!

Please tells us more about it!

Get the fastest response by connecting on Whatsapp

Our Brands by Nishtya Infotech Private Limited:

Jobaaj Stories

Jobaaj Learnings

Jobaaj Procapitas

10,000+ Users trust us!

Unlimited Courses

Live Sessions

Unlimited Resources

24 X 7 Discord Community

What all it include

Have a Coupon Code

ProCapitas Tank

Subscribe to get your weekly dose of the latest, most important Financial developments delivered to you in an easy to read and jargon-free format.

Your email is safe with us, we don't spam.

You are all set to receive your weekly Newsletters!

Make sure you check your Inbox.

Please also check your promotions tab

You are already subscribed.

And all set to receive your weekly Newsletters!

• BSE Sensex:  73738.45 0.12%
• BSE 500:  32589.5 0.31%
• BSE 200:  10199.36 0.20%
• BSE 100:  23435.85 0.14%
• BSE Mid-Cap:  40584.17 0.52%
• BSE Small-Cap:  46492.21 1.05%
• BANKEX:  54319.13 0.18%
• BSE IT Sector:  34487.08 0.42%
• Nifty 50:  22368 0.14%
• Nifty 500:  20652.65 0.38%
• Nifty 200:  12478.35 0.30%
• Nifty 100:  23116 0.16%
• Nifty Midcap 100:  49614.85 1.06%
• Nifty Small 100:  16687.15 1.23%
• Nifty IT:  33714.55 0.52%
• Nifty PSU Bank:  7150 0.05%
• Tata Consumer Q4 PAT slides 19...
• NBCC rallies as new orders zoo...
• Artson Engineering hits the ro...
• Aarti Drugs Baddi facility get...
• Mastek jumps on major Saudi co...
• Euro to INR:  88.89 -0.23%
• Pound to INR:  103.18 -0.85%
• Yen to INR:  0.54 -0.29%
• Dollar to INR:  83.42 -0.16%
• Investor Charter
• Login Support

• Mutual Funds
• Derivatives
• Commodities

Aditya Birla Sun Life Mutual Fund Axis Mutual Fund Bandhan Mutual Fund Bank of India Mutual Fund Baroda BNP Paribas Mutual Fund Canara Robeco Mutual Fund DSP Mutual Fund Edelweiss Mutual Fund Franklin Templeton Mutual Fund Groww Mutual Fund HDFC Mutual Fund HSBC Mutual Fund ICICI Prudential Mutual Fund Invesco Mutual Fund Kotak Mahindra Mutual Fund LIC Mutual Fund Mahindra Manulife Mutual Fund Mirae Asset Mutual Fund Motilal Oswal Mutual Fund Nippon India Mutual Fund PGIM India Mutual Fund Quantum Mutual Fund SBI Mutual Fund Shriram Mutual Fund Sundaram Mutual Fund Tata Mutual Fund UTI Mutual Fund WhiteOak Capital Mutual Fund

DEBT HYBRID EQUITY

Index Futures Stock Futures Index Options Stock Options

Please Select...

FUTURE OPTION

General Notifications

My notifications, research notifications.

This awesome feature is still in our labs.

Back To Menu

• Mutual Fund
• Fixed Income
• NCD and Bonds
• Demat Account
• 3 in 1 account
• Platforms - RING
• Managed Accounts
• Private Client Group
• Business Associates
• REFER & EARN
• Markets Today
• Top Performers
• Latest News
• Indices & Sectors
• Market Statistics
• Market Today
• Investment Ideas
• Trading Ideas
• Commodity Ideas
• Mutual Fund Ideas
• Currency Ideas
• Investment Reports
• Trading Reports
• Commodity Reports
• Currency Reports
• Mutual Fund Reports
• Debt Market outlook
• Alerts Engine
• Returns Calculator
• SIP calculator
• E-Classroom
• Performance
• P & L Statement
• Capital Gain & Loss Statement
• Transactions Summary
• Dividend Summary
• Axis Intellect
• SmartEdge Plus
• Equity smallcases
• Global Investing
• SWIFT TRADE
• COMMODITIES
• --> 1511 Share

Welcome to Research ideas.

Tell us about your investment preferences

• Long term More than 1year
• Intermediate term 6 months to 1 year
• Short term 5 days to 180 days
• Very Short term 0 to 5 days

Select your investment horizon

Select your investment category

Online trading for clients based in USA and Canada is restricted. You can continue placing orders through mapped dealers offline

Bain Capital exits Axis Bank, raises $429 mln in stake sale

• Medium Text

Coming soon: Get the latest news and expert analysis about the state of the global economy with Reuters Econ World. Sign up here.

Reporting by Scott Murdoch in Sydney; additional reporting Kane Wu in Hong Kong; Editing by Jacqueline Wong, Kirsten Donovan and Shinjini Ganguli

Our Standards: The Thomson Reuters Trust Principles. New Tab , opens new tab

Thomson Reuters

Scott Murdoch has been a journalist for more than two decades working for Thomson Reuters and News Corp in Australia. He has specialised in financial journalism for most of his career and covers equity and debt capital markets across Asia and Australian M&A. He is based in Sydney.

Super RTL, a children's television network belonging to Bertelsmann's RTL Group , has struck a deal to acquire Nickelodeon series in Germany, the group said in a statement on Tuesday.

Markets Chevron

TSX climbs as tech stocks power broader recovery

Canada's main stock index climbed to its highest level in over a week, as tech stocks led a broader recovery, while investors looked forward to an earnings packed week in the United States.

Axis Bank's plans to raise equity capital surprise Nomura

N omura Research has expressed surprise at the prospect of Axis Bank initiating an equity capital raise, especially because of the management's stance against raising capital in the near future.

"We note that the approval sought at the board meeting may also just be an enabling provision (which is a procedural approval taken by several banks from their respective boards at the beginning of a new FY), though Axis has historically not done this. We await clarity on this along with the results on 24 April," the foreign brokerage said in a note.

Axis Bank’s CET1 was at 13.7 percent as of December quarter against regulatory minimum of 8 percent. Other private sector banks such as ICICI Bank, HDFC Bank and Kotak Mahindra Bank are at 16 percent, 16.3 percent and 20.1 percent, respectively.

"Our calculation suggests that for every 100bp of extra CET1, Axis Bank will have to  raise Rs 9,900 crore in equity capital. This would result in a negative FY26 RoE impact of 90bps. In such a scenario, FY26 EPS gets diluted by 3 percent while the FY26 BVPS would see 1.5 percent accretion," Nomura said.

In an exchanges filing on April 18, Axis Bank has notified that at its board meeting on April 24 (for Q4 FY24 results), it will also be evaluating a potential equity capital raise via QIP/ADR issuance/preferential allotment ‘at an appropriate time’.

Nomura said the near-term risk of increased equity supply could weigh on share price performance, especially given recent significant block deals (December 2023 and April 2024). It awaits clarification on whether the approval from the board meeting is merely procedural, as seen in past fiscal years, or if it holds more substantial implications. Further details are anticipated from management post the April 24 results.

Axis Bank remains a top pick for Nomura. They will closely monitor any loan growth pressures stemming from deposit mobilisation challenges, particularly given its high loan-to-deposit ratio (93 percent as of Q3 FY24, compared to 80 percent for the sector overall).

Despite this, Nomura believes that current valuations account for much of these concerns, with Axis Bank trading at 1.5x FY26 book value per share (BVPS) compared to 1.8x/2.1x for HDFC Bank and ICICI Bank, respectively. Despite underperforming the broader Bank Nifty index by 6 percent year-to-date, Nomura expects Axis Bank to achieve around 18 percent return on equity (RoE) over FY25-26.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.