Axis Bank Q3 Results Review — Inline; Business Growth Moderates; Motilal Oswal Retains 'Neutral' Stance

Axis Bank's net interest income grew 8.6% YoY/1% QoQ to Rs 136 billion (inline), net interest margins moderated 6 bp QoQ to 3.93%..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Axis Bank Ltd. reported Q3 FY25 net profit of Rs 63 billion (up 3.8% YoY, in line) as lower opex offset higher provisions. In 9M FY25, earnings grew 8.6% YoY to Rs 192.6 billion, and we expect Q4 FY25 PAT to come in at Rs 68.4 billion. Net interest income grew 8.6% YoY/1% QoQ to Rs 136 billion (inline). Net interest margins moderated 6 bp QoQ to 3.93%.Provisioning expenses stood at Rs 21.6 billion (higher than our estimate due to high loan loss-related provisions) as Axis Bank tightened its provisioning rules.Loan book grew 8.8% YoY (1.5% QoQ). Deposits grew 9.1% YoY (0.8% QoQ), resulting in a credit/deposit ratio of 92.6%. Current account and savings account mix moderated to 39%. Average liquidity coverage ratio increased 400 bp QoQ. Fresh slippages increased to Rs 54.3 billion (Rs 44.4 billion in Q2 FY25, in line). Gross / net non-performing asset ratios inched up to 1.46%/0.35%. Provision coverage ratio stood at 76.2%. We cut our FY26E/FY27E earnings by 4-5% and estimate FY26E RoA/RoE of 1.6%/14.6%. While the near-term growth and asset quality performance may remain suppressed, reflecting the stress in the macro environment, we see limited downside risk from the current levels. Retain Neutral with a target price of Rs 1,175 (1.5x Sep’26E adjusted book value)..Click on the attachment to read the full report:.Axis Bank Q3 Results Review — 'Hold' The Stock Says Systematix On Weak Performance; Revises Target Price.DISCLAIMERThis 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.

Axis Bank Q3 Results Review — Inline; Business Growth Moderates; Motilal Oswal Retains 'Neutral' Stance

While the near-term growth and asset quality performance may remain suppressed, reflecting the stress in the macro environment, the brokerage sees limited downside risk from the current levels.

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Axis Bank Q3 Results Review — Inline; Business Growth Moderates; Motilal Oswal Retains 'Neutral' Stance

While the near-term growth and asset quality performance may remain suppressed, reflecting the stress in the macro environment, the brokerage sees limited downside risk from the current levels.

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