Axis Bank Q3 Results Review - Earnings Momentum Steady; Margin Improves Further: Motilal Oswal
Axis Bank reported a profit after tax of Rs 58.5 billion (up 62% YoY, 4% beat), largely driven by a 12% beat in other income.
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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.
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