Axis Bank (Q3 FY14)

India Infoline News Service | Mumbai |

NIM surprisingly declined only by 8bps qoq to 3.8% against our expectation of 10-15bps contraction.

CMP Rs1,177, Target Rs1,428, Upside 21.4%
  • Loan growth at 18% yoy; continues to be driven by Retail & SME segments 

  • Overall deposit growth modest; but retail franchise continues to improve 

  • NIM resilience surprises once again; outlook also healthy   

  • Fee growth moderates further; C/I ratio deteriorates as a result

  • Impaired asset creation within expectations; FY14 guidance maintained

  • Valuation largely captures potential risks; Retain BUY with 9-12 month target price of Rs1,428

Result table
(Rs mn)
Q3 FY14
Q2 FY14
% qoq
Q3 FY13
% yoy
Total Interest Income
77,891
76,090
2.4
69,649
11.8
Interest expended
(48,051)
(46,723)
2.8
(44,701)
7.5
Net Interest Income
29,840
29,366
1.6
24,948
19.6
Other income
16,444
17,661
(6.9)
16,154
1.8
Total Income
46,285
47,027
(1.6)
41,102
12.6
Operating expenses
(20,134)
(19,530)
3.1
(17,487)
15.1
Provisions
(2,025)
(6,875)
(70.5)
(3,868)
(47.7)
PBT
24,126
20,623
17.0
19,747
22.2
Tax
(8,084)
(7,000)
15.5
(6,275)
28.8
Reported PAT
16,042
13,623
17.8
13,472
19.1
EPS
136.7
116.1
17.7
126.2
8.4

Key  Ratios
Q3 FY14
Q2 FY14
chg qoq
Q3 FY13
chg yoy
NIM (%)
3.7
3.8
(0.1)
3.6
0.1
Cost of Funds (%)
6.3
6.3
0.0
6.5
(0.2)
CASA (%)
42.6
42.9
(0.3)
40.0
2.6
C/D (x)
0.81
0.79
0.02
BSE 541.60 6.65 (1.24%)
NSE 541.45 5.70 (1.06%)

***Note: This is a NSE Chart

 

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