Axis Bank Q4 Results Review - NIMs Improved Slightly QoQ; RoA Sustained At 1.8% FY24: IDBI Capital

IDBI Capital Report

Axis Bank Ltd.’s net interest margin improved by 5 basis points QoQ to 4.06% on account of pricing improvements across the portfolio. Further, low yielding RIDF funds % of advances declined to lowest level to 1.5% supported the net interest margins.

Credit growth declined to 14% YoY in line with guidance due to base impact. Management guided for 300-400 bps higher than industry average in medium to long term. Asset quality improved as gross non-performing asset stood at 1.43% versus 1.58% led by lower slippages.

Net interest income grew by 4% QoQ backed by improvement in NIMs.

Pre-provision operating proft grew by 15% QoQ due to higher other income. Provisions increased by 15% due to lower recoveries.

We maintain estimates and ‘Buy’ rating with a target price of Rs.1,400, valuing parent business at Rs 1,340 at 2.1 times price/adjusted book FY26E and rest for the subsidiaries.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit 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 NDTV Profit.

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