Axis Bank (Q2 FY14)

India Infoline News Service | Mumbai |

Impressive execution on focused retail strategy continued in Q2 FY14 with retail loans share increasing by 160bps qoq to 30.2%.

CMP Rs1,094, Target Rs1,340, Upside 22.4%

  • Retail loan shift continues; SME growth also remains strong 

  • Deposit growth muted as bank utilizes raised equity; CASA was stable

  • NIM continues to surprise positively; full-year margin guidance upgraded

  • Fee growth moderates further; C/I ratio improves on lower cost growth

  • Asset quality stress on up move; stress asset addition guidance increased 

  • Valuation largely captures potential risks; Retain BUY

Result table
(Rs mn)
Q2 FY14
Q1 FY14
% qoq
Q2 FY13
% yoy
Total Interest Income
76,090
72,778
4.5
66,872
13.8
Interest expended
(46,723)
(44,126)
5.9
(43,603)
7.2
Net Interest Income
29,366
28,652
2.5
23,269
26.2
Other income
17,661
17,813
(0.9)
15,931
10.9
Total Income
47,027
46,465
1.2
39,200
20.0
Operating expenses
(19,530)
(18,030)
8.3
(17,417)
12.1
Provisions
(6,875)
(7,123)
(3.5)
(5,094)
35.0
PBT
20,623
21,313
(3.2)
16,688
23.6
Tax
(7,000)
(7,224)
(3.1)
(5,453)
28.4
Reported PAT
13,623
14,089
(3.3)
11,235
21.2
EPS
116.1
120.2
(3.4)
108.4
7.1

Key  Ratios
Q2 FY14
Q2 FY14
chg qoq
Q2 FY14
chg yoy
NIM (%)
3.8
3.9
(0.1)
3.5
0.3
Cost of Funds (%)
6.3
6.3
(0.0)
6.5
(0.3)
CASA (%)
42.9
42.4
0.5
40.5
2.3
C/D (x)
0.79
0.83
(0.04)
BSE 542.45 8.30 (1.55%)
NSE 542.50 8.45 (1.58%)

***Note: This is a NSE Chart

 

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