Axis Bank Q4 Results Review - Balance Sheet Profile To Cushion Net Interest Margin: Prabhudas Lilladher

"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..Prabhudas Lilladher Report.Axis Bank Ltd. delivered a good quarter as core pre-provision operating profit beat our estimate by 3.6% driven by better fees and net interest income. While loan growth at 14.2% YoY was a slight miss (86 bps), reported net interest margin increased by 5 bps QoQ to 4.06%, which was a positive given net interest margin environment is tough. Balance sheet profile has been improving since-share of higher yielding retail (including agri) has risen by 660 bps over Q4 FY23 to Q4 FY24 while that of corporate has declined by 303 bps, low-yielding RIDF share reduced YoY to 1.5% from 5.1%,loan-to-deposit ratio decreased by 246 bps QoQ to 90.3% given stronger deposit growth that was led by CASA + RTD and,liquidity coverage ratio has been stable at ~120% with excess SLR at 8.8% of loans. Axis Bank remains our top pick as NIM trajectory over FY24-26E is likely to be superior. With FY26E core return on equity/return on asset of 1.7%/16% stock is trading at 29% discount to ICICI Bank, which should narrow. We maintain multiple at 2.2 times and but as we roll forward to March 2026 adjusted book value our target price increases to Rs 1,400 from Rs 1,250. Retain ‘Buy’..Click on the attachment to read the full report:.Axis Bank Q4 Results Review - An All-Round Beat To Expectations: Systematix.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 Q4 Results Review - Balance Sheet Profile To Cushion Net Interest Margin: Prabhudas Lilladher

Core pre-provision operating profit beat due to better fees and NIM due to superior loan mix.

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Axis Bank Q4 Results Review - Balance Sheet Profile To Cushion Net Interest Margin: Prabhudas Lilladher

Core pre-provision operating profit beat due to better fees and NIM due to superior loan mix.

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