Axis Bank Q4 Results Review: Systematix Maintains 'Hold' Rating But Hikes Target Price

In terms of asset quality in the unsecured book, Axis Bank's management highlighted that while credit card asset quality is stabilizing, stabilization in the personal loan book is a few quarters away. FY26 credit costs to also be negatively impacted by further tightening of policies w.r.t downgrades in unsecured loans. However, the bank expects the impact to be marginal..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..Systematix Report.Axis Bank Ltd. reported Q4 FY25 PAT of Rs 71 billion (13% QoQ, flattish YoY) which was higher than our estimates mainly due to lower provisions. While net interest income growth was muted at 1.5% QoQ, 5.5% YoY mainly due to weak loan growth, PAT growth of 13% qoq, flat yoy was mainly supported by higher fee income growth and lower provisions which was partly offset by higher opex. .Other key highlights were: Loan growth of 2.6% QoQ, 8% YoY was weak and was lower than system loan growth of 11% as of 21-Mar’25.Deposit growth was strong sequentially at 7% QoQ, 10% YoY mainly led by seasonally strong CASA growth of 10.5% QoQ, 4% YoY. Reported NIM increased to 3.97% (+4bps QoQ) supported by +2bps increase in spreads and +2bps benefit from lower interest reversal on slippages. Fee income increased by 16% QoQ, 12% YoY mainly led by strong growth in retail fee income (+22% QoQ, 14% YoY) while corporate fee growth was 1.7% QoQ, 8% YoY.Opex/assets increased to 2.51% (+12bps QoQ) mainly due to increase in other overheads by +13.5% QoQ, 7.5% YoY due to higher PSLC purchase costs of Rs 5.91 billion due to shortfalls in subsegment PSL requirements. GNPA reduced to 1.3% (-18bps QoQ) with significant reduction in wholesale GNPA at 0.92% (-46bp QoQ). Credit costs reduced to 0.53% vs 0.87% qoq due to provision reversals of Rs 8 billion (~30bps benefit) on government guaranteed SRs.The bank delivered FY25 RoA of 1.74% vs 1.78in FY24..Click on the attachment to read the full report:.Axis Bank Q4 Results Review: Dolat Capital Maintains 'Accumulate', Hikes 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 Q4 Results Review: Systematix Maintains 'Hold' Rating But Hikes Target Price

While Axis Bank's valuation remains low around -1SD below long term average, Systematix retains Hold rating until growth returns in a meaningful way.

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