Axis Bank - Well On Track; Credit Growth Remains Key Monitorable: HDFC Securities Retail Research
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HDFC Securities Retail Research
Axis Bank Ltd. is the third largest private sector bank in India. Over the years it has consistently focused on de-risking its loan book by reducing corporate portfolio and focusing on high margin less risky retail segment.
We like Axis Bank because of its strong balance sheet with granular, sticky liability base, lower stress levels, higher provision coverage ratio and adequate capital adequacy ratio.
Improved underwriting practices and lower exposure to contextually vulnerable segments will help the bank become even stronger. The loan book quality has improved significantly post the new top management.
The bank is scaling up retail franchise, which is diversified across the segments and ~80% secured with significantly high proportion of existing to bank) and salaried customers.
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