Axis Bank Q3 Results Review - Earnings Momentum Steady; Margin Improves Further: Motilal Oswal

Motilal Oswal Report

Axis Bank Ltd. reported a profit after tax of Rs 58.5 billion (up 62% YoY, 4% beat), largely driven by a 12% beat in other income. Net interest income growth was healthy, aided by margin expansion of 30 bps QoQ to 4.26%. 

Loan growth was healthy at 15% YoY and 4.3% QoQ, led by strong growth in the corporate and small and medium enterprise segments. The retail segment witnessed muted trends. Deposit growth was modest, with a moderation in current account and savings account and retail deposits and strong sequential trends in non-retail deposits.

Fresh slippages increased slightly to Rs 38.1 billion; however, healthy recoveries and upgrades led to an improvement in asset quality ratios. Restructured book was under control at 0.30% of customer assets.

We tweak our estimates slightly and expect Axis Bank to deliver return on asset/return on equity of 1.9%/17.3% in FY25.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime 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 BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.