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Axis Bank

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Submitted By Amruta12345
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Axis Bank
CMP: Rs1125 TP: Rs1441 Buy

Particulars NII Operating Profit PAT

1QFY14 4QFY13 2,865 2665 2844 2800 1409 1555

% chg (QOQ) 7.5 1.6 (9.40)

1QFY13 2180 1964 1154

% chg (YOY) 31.4 44.8 22.1

CMP Target Price Investment Period Stock Information Sector Market Cap Beta NSE Code 52 Week High/Low

₹ 1,125 ₹ 1,441 12 Months

Highlights: Axis Bank reported a 22.1% YOY earnings growth for the quarter. During 1QFY2014, the bank reported a moderate growth in business, with advances and deposits registering a growth of 15.8% and 7.1% YOY, respectively. Loan book growth was primarily driven by strong traction in the retail and SME advances, which grew by 39.7% and 27.5% YOY, respectively. Outlook and valuation: Axis Bank’s current valuations at 1.8x ABV is below longer term fair value estimates. In the near term, given the weak macro environment and cautious outlook for the sector, stocks such as Axis Bank may undershoot fair value estimates, but from a relative point-of-view compared to peers, it remains one of the preferred banks. Asset Quality: As on 30th June 2013, Gross NPAs and Net NPAs stood at 1.10% and 0.35%, as against 1.06% and 0.32% respectively as on 31st March 2013. The Bank held provision coverage of 80% as on 30th June 2013 (as a proportion of Gross NPAs including prudential write-offs). The provision coverage before accumulated write-offs was 89%. The cumulative value of assets restructured till 30th June 2013, stood at ₹4,211 crores against ₹4,368 crores as on 31st March 2013, constituting 1.87% of gross customer assets. During the quarter, slippages and fresh restructuring taken together amounted to more than ₹1,350cr. Along with sequentially higher slippages, the bank also reported sequentially lower recoveries and upgrades at ₹72cr compared to ₹205cr in 4QFY2013, which resulted in a sequential increase of 4.0% and 12.2%,

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