Post on 23-Apr-2022
April 28, 2021 1
Rating: ACCUMULATE | CMP: Rs700 | TP: Rs770
Reasonable performance
Quick Pointers:
Strong loan growth of 7% QoQ was ahead of expectations, although NIMs were
lower/flattish
Slippages were under control although bank wrote-off Rs55.3bn of loans
Axis bank earnings of Rs26.8bn (PLe: Rs19.6bn) saw a strong beat on back
of better than expected other income and lower provisioning. PPOP grew by
17%, although core PPOP grew by 9% YoY as NII growth looked slightly
weaker with growth of 11% YoY which was lower than 16% of FY21. Headline
asset quality was better due to better recovery/upgrades & higher write-off of
Rs55.3bn (89bps of loans). Bank has maintained PCR of 72% and 80bps of
COVID provisions over and above regulatory specific provisions on non
NPAs. With legacy NPAs provided for, better growth and initiatives are
working gradually to move ratios towards high ROE goal of 17-18%. With
delta from lowering credit cost towards 120-130bps, we expect ROEs to move
to 13% by FY23, but is a notch lower than ICICI. Retain Accumulate with
revised TP of Rs770 (from Rs725) based on 2.0x (from 1.9x) FY23 ABV.
Operationally good but not very straight forward: Bank’s PPOP grew by
17% YoY/12% QoQ as treasury income was quite good contrary to
expectations. Core PPOP grew by 9% YoY/11% QoQ led by good fee income
growth of 15% YoY. Although NII was decent with 11% YoY/2.5% QoQ growth
but looks slow compared to loan growth of 7% QoQ and average CASA growth
of 7% QoQ. Despite strong growth NIMs were down by 3bps QoQ to 3.56%
and still flattish if adjusted to IT refund. Staff opex was also up by 21% YoY on
gratuity provisions owing to SC announcement on social security.
Headline asset quality was good, but higher w.off was deterrent:
GNPA/NNPA ratio improved by 90/7bps QoQ to 3.7%/1.1%. It was also lower
by 120/40bps YoY as well. Slippages were Rs55.1bn, slightly higher than
anticipated but recovery/upgrades of 34.6bn were good. Bank wrote -off
Rs55.3bn of loans which were on quite higher side in our view and has been
for last quarter as well due to bank’s rule based provision and write -off policy.
Two-third of slippages were from retail in Q4 which was annualized 400bps of
loans and higher than 3.9% of FY21. Although, bank has maintained PCR of
72% despite higher write-offs and provisioning management, while 80bps of
loans as COVID provision over and above for specific provisions provides
strength to balance sheet.
Strong display of business growth: Bank’s loans grew by 9% YoY (12% incl.
TLTROs) led across segments. Corporate/SME saw renewed traction post
being conservative in last few quarters mainly focused on MNC, Mid-corporate
and PSUs. Retail growth was strong in mortgages, biz banking and rural,
slower in cards and cautiously optimistic in personal loans. Bank saw strong
30-40% QoQ disbursements across product levels much above levels seen
pre-COVID with 58% of business driven by retail liabilities branches. On
liabilities side, CASA traction was good with average growing by 18% YoY/7%
QoQ and decent retail TDs. Focus remains on granularity to make it more linear
and has continued to see strong additions of liability customers and remains
high base from cross sell of products.
Axis Bank (AXSB IN)
April 28, 2021
Q4FY21 Result Update
☑ Change in Estimates | ☑ Target | Reco
Change in Estimates
Current Previous
FY22E FY23E FY22E FY23E
Rating ACCU MUL ATE ACCUMULATE
Target Price 770 725
NII (Rs. m) 3,40,036 3,97,748 3,30,704 3,80,237
% Chng. 2.8 4.6
Op. Pro fit (Rs. m) 2,97,734 3,47,856 2,82,295 3,21,520
% Chng. 5.5 8.2
EPS (Rs.) 38.9 51.8 37.2 52.7
% Chng. 4.5 (1.7 )
Key Financials - Standalone
Y/e Mar FY20 FY21 FY22E FY23E
NII (Rs bn) 252 292 340 398
Op. Prof it (Rs bn) 234 257 298 348
PAT (Rs bn) 16 66 119 159
EPS (Rs.) 6.0 22.4 38.9 51.8
Gr. (%) (34.8) 271.0 73.7 33.3
DPS (Rs.) 1.0 - - 8.0
Yield (%) 0.1 - - 1.1
NIM (%) 3.2 3.4 3.6 3.7
RoAE (%) 2.1 7.1 11.1 13.2
RoAA (%) 0.2 0.7 1.1 1.4
P/BV (x) 2.3 2.1 1.9 1.7
P/ABV (x) 2.6 2.3 2.0 1.8
PE (x) 115.9 31.2 18.0 13.5
CAR (%) 17.5 19.1 20.4 20.1
Key Data AXBK.BO | AXSB IN
52-W High / Low Rs.800 / Rs.333
Sensex / Nifty 48,944 / 14,653
Market Cap Rs.2,143bn/ $ 28,697m
Shares Outstanding 3,064m
3M Av g. Daily Value Rs.27078.94m
Shareholding Pattern (%)
Promoter’s 13.58
Foreign 51.43
Domestic Institution 23.27
Public & Others 11.72
Promoter Pledge (Rs bn) -
Stock Performance (%)
1M 6M 12M
Absolute 0.2 37.6 63.7
Relativ e 0.3 13.9 6.1
Pritesh Bumb
priteshbumb@plindia.com | 91-22-66322232
Anmol Das
anmoldas@plindia.com |
Axis Bank
April 28, 2021 2
Exhibit 1: Decent NII, other income & lower provisions boost earnings
Financial Statement (Rs m) Q4FY21 Q4FY20 YoY gr.
(%) Q3FY21
QoQ gr.
(%)
Interest Income 155,452 162,341 (4.2) 154,984 0.3
Interest Expenses 79,902 94,264 (15.2) 81,256 (1.7)
Net interest income (NII) 75,550 68,077 11.0 73,728 2.5
Other income 46,683 39,855 17.1 37,760 23.6
Total income 122,233 107,932 13.2 111,488 9.6
Operating expenses 53,586 49,421 8.4 50,533 6.0
-Staff expenses 16,676 13,740 21.4 16,774 (0.6)
-Other expenses 36,910 35,681 3.4 33,759 9.3
Operating profit 68,647 58,511 17.3 60,955 12.6
Core operating profit 60,757 55,871 8.7 54,803 10.9
Total provisions 32,950 77,300 (57.4) 46,043 (28.4)
Profit before tax 35,697 (18,789) NA 14,912 139.4
Tax 8,926 (4,911) NA 3,746 138.3
Profit after tax 26,771 (13,878) NA 11,166 139.8
Balance sheet (Rs m)
Deposits 7,073,061 6,401,049 10.5 6,541,403 8.1
Advances 6,237,202 5,714,242 9.2 5,827,539 7.0
Ratios (%)
Profitability ratios
RoaA 1.1 (0.6) 173 0.5 63
NIM 3.6 3.6 1 3.6 (3)
Cost of Funds 4.1 5.2 (110) 4.3 (20)
Asset Quality
Gross NPL 253,148 302,338 (16.3) 219,979 15.1
Net NPL 69,935 93,604 (25.3) 46,098 51.7
Gross NPL ratio 3.7 4.9 (116) 3.4 26
Net NPL ratio 1.1 1.6 (44) 0.7 38
Coverage ratio (Calc) 72.4 69.0 333 79.0 (667)
Business & Other Ratios
Low -cost deposit mix 45.0 39.0 600 42.0 300
Cost-income ratio 43.8 45.8 (195) 45.3 (149)
Non int. inc / total income 38.2 36.9 127 33.9 432
Credit deposit ratio 88.2 89.3 (109) 89.1 (90)
CAR 19.1 17.5 159 19.3 (19)
Tier-I 16.5 14.5 198 16.5 (1)
Source: Company, PL
Exhibit 2: A broad based growth, in retail led by mortgages
Segmental Mix (Rs m) Q4FY21 Q4FY20 YoY gr. (%)
Q3FY21 QoQ gr. (%)
Large & mid-corporate 2,193,560 2,041,030 7.5 2,008,910 9.2
SME Advances 698,500 619,210 12.8 639,690 9.2
Retail 3,345,140 3,054,000 9.5 3,178,940 5.2
- Housing Loans & LAP 1,204,250 1,068,900 12.7 1,144,418 5.2
- Personal loans 401,417 397,020 1.1 381,473 5.2
- Auto loans 401,751 397,020 1.2 413,262 (2.8)
Source: Company, PL
NII growth was decent with 11%
growth led by lower funding cost, although there was drag on yields
Better fees, treasury contributed for
other income to be better
Staff expenses continue to see one-off
provision on gratuity
Provisions came off despite providing
higher on change in policy in b iz
banking
Sequential loan/deposit growth was
quite strong
NIMs have been sub -par despite strong loan growth /CASA growth
Headline asset quality came off due to
higher write-offs during the quarter
Axis Bank
April 28, 2021 3
Key Q4FY21 Concall Highlights
Business Strategy
Continue to focus on six-point strategy (i) Strengthening core of bank (ii) Invest
in technology (iii) Making Axis digital (iv) granularity in
loans/deposits/exposures (v) Strong focus on PPOP growth and (vi) Improve
reach & scale up subsidiaries
Assets/Liabilities
Retail book - The retail segment saw strong momentum with highest ever
quarterly retail disbursements. Domestic secured retail loans grew 13% YoY
and 8% QoQ. Secured segments like HL, LAP and small biz banking continued
to grow strongly with 45% QoQ, 51% QoQ and 42% QoQ growth in
disbursements, respectively
Corporate book – Large corporate continue to deliver amidst deleveraging &
repayments/pre-payments. Strong growth in non-large corporate side like –
Mid corp, Govt biz, MNCs which is 15-18% of loans.
Under ECLGS disbursed Rs104bn of loans to 26000 a/c with 99% being
ECLGS 1.0.
Deposits – Focus remains on granular accretion. Bank added 1.8mn new
liability a/c opened in Q4, up 10% QoQ while added 6.7mn new accounts for
FY21. New savings & CA acquisition grew by 12% & 7%QoQ and average
retail saving balances were up by 11% YoY. New salary relationships grew by
55% YoY to 2700+ names.
Opex/NIMs
Staff opex has been up YoY as bank provides for social security (gratuity) of
Rs2.2bn
NIMs have been slightly subdued due to pivoting to secured assets and better
rated corporates but the is compensated by fees improving. Targeting a NIM
of 3.7-3.8% in-line to reach the 18% ROE target
Asset Quality
Restructuring & BB and below book – Fund based restructuring is Rs18.5bn
or 0.3% of customer assets and has implemented Rs6.23bn or 0.1% of GC.
Segmental break up was 0.6% wholesale book, 0.14% in Retail & 0.02% SME.
BB & below stood at 1.4% with 38% is rated better than 1 rating agency. Bank
collected for Rs14.0bn, Rs9.2bn slipped and 9.6bn was downgraded to BB &
below.
Cheque bounce rates slightly higher than pre-covid. Although demand
resolution has been higher given the strong recovery workforce built and
investments made in collections in FY21.
Bank witnessed Rs52.8bn of slippages of which 65% were from retail book and
in FY21 retail slippages were 3.73%. Fair mix of secured loans and Unsecured
with more from cards biz and are one time as did not rely on restructuring.
Axis Bank
April 28, 2021 4
Bank made Rs8.0bn of provisions on change in policy for commercial banking
group and no provision policy changes expected in FY22. W.offs have been on
rule based and has been based on biz mix.
Exhibit 3: NIMs have been steady
3.2%
3.3%
3.4%
3.5%
3.6%
3.7%
3.8%
3.9%
4.0%
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
3Q
20
4Q
20
1Q
21
2Q
21
3Q
21
4Q
21
Net Interest Margin (%)
Source: Company, PL
Exhibit 4: CASA improves on both CA & SA
36%
39%
42%
45%
48%
51%
54%
57%
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
3Q
20
4Q
20
1Q
21
2Q
21
3Q
21
4Q
21
Low Cost deposits (%)
Source: Company, PL
Exhibit 5: Repo linked loans have seen improvement on incremental lending
has been higher to retail
10% 9% 8% 7% 6% 6% 6% 5% 4%
56% 59% 60%55% 52% 50%
43% 39% 36%
25% 24% 24%26%
26% 28%28%
29%29%
9% 8% 8%9% 9% 8%
8%8%
6%
3% 6% 8%15% 19% 25%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21
Base Rate MCLR Fixed LIBOR Repo
Source: Company, PL
Exhibit 6: Steady flow of fees for the bank
38% 35% 38% 40% 39% 36% 41% 42% 44%
23% 27% 26% 27% 25%20%
21% 22% 21%
17% 16%18% 18%
19%43% 38% 36% 36%5% 3% 4%
4%17%3% 9% 2% 1%
0%14% 10% 12% 10%
0%
4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21
Retail (non card) Retail (card) Transc. Bnking
SME Treasury & DCM Corp Fees
Source: Company Data, PL Research
Axis Bank
April 28, 2021 5
Exhibit 7: C/I was steady but higher than peers on one-offs provision
34%
36%
38%
40%
42%
44%
46%
48%
50%
52%
54%
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
3Q
20
4Q
20
1Q
21
2Q
21
3Q
21
4Q
21
Cost-Income Ratio
Source: Company, PL
Exhibit 8: Asset quality improves on better recovery & higher write-offs
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
3Q
20
4Q
20
1Q
21
2Q
21
3Q
21
4Q
21
Gross NPA (%) Net NPA (%) Coverage Ratio (%) - RHS
Source: Company, PL
Exhibit 9: Corporate book rating improves as incremental lending to strong
rated corporates
66
%
68%
70
%
74
%
77%
78%
79
%
82%
82%
83
%
84
%
84
%
83
%
82%
82%
83
%
85
%
34%
32
%
30%
26%
23
%
22
%
21%
18
%
18
%
17%
16%
16%
17%
18
%
18
%
17%
15
%
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
3Q
20
4Q
20
1Q
21
2Q
21
3Q
21
4Q
21
A- & Above BBB and below
Source: Company, PL Note – BB book clubbed with BBB from Q4FY20
Axis Bank
April 28, 2021 6
Exhibit 10: SME rating improves 100bps sequentially
84%
85%
86%
87%
88%
88%
89%
86%
85%
85%
86%
86%
85%
84%
85%
85%
86%
16% 15%13% 13% 12% 12% 11%
14% 15% 15% 14% 14% 15% 16% 15% 15% 14%
4Q
17
1Q
18
2Q
18
3Q
18
4Q
18
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
3Q
20
4Q
20
1Q
21
2Q
21
3Q
21
4Q
21
SME 3 or better Others
Source: Company, PL
Exhibit 11: Non NPA stress book has been coming off with decent provision coverage
Stressed Loans (Rs Mn) 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21
Gross slippages 47,980 49,830 62,140 39,200 22,180 17,510 79,930 52,850
Recoveries+ Up gradations 21,770 22,130 24,220 24,890 6,080 20,260 21,650 34,620
Write-offs 30,050 31,040 27,900 12,700 22,840 18,120 42,570 55,530
Annualized Slippages (%) 3.87% 3.91% 4.64% 2.80% 1.57% 1.23% 5.52% 3.50%
BB & Below book 75,040 62,910 51,280 65,280 64,200 91,180 87,220 74,430
NFB O/s to BB & Below exposures 25,000 22,000 36,700 39,060 37,210 49,280 47,960 45,740
Investments O/s in BB & Below rating 17,580 9,850 5,620 6,120 8,080 6,200 6,660
Total BB & below book 100,040 102,490 97,830 109,960 107,530 148,540 141,380 126,830
% of customer assets 1.7% 1.8% 1.7% 1.9% 1.7% 2.3% 2.2% 1.9%
Provisions held 75,872 80,648 114,376 106,035 91,318
Total Restructured Dispensation 27,090 18,480
% of loans 0.4% 0.3%
Source: Company, PL
Exhibit 12: We increase our estimates on growth & lower provisions slightly
Earning Estimate
Change (Rs mn)
Old Revised % Change
FY22E FY23E FY22E FY23E FY22E FY23E
Net interest income 330,704 380,237 340,036 397,748 2.8 4.6
Operating profit 282,295 321,520 297,734 347,856 5.5 8.2
Net profit 113,886 161,424 119,119 158,841 4.6 (1.6)
Loan Grow th (%) 9.0 14.0 10.0 12.0 1.0 (2.0)
Credit Cost (bps) 190.0 135.0 140.0 130.0 (50.0) (5.0)
EPS (Rs) 37.2 52.7 38.9 51.8 4.5 (1.7)
ABVPS (Rs) 329.3 375.3 342.2 384.6 3.9 2.5
Price target (Rs) 725 770 6.2
Recommendation ACCUMULATE ACCUMULATE
Source: Company, PL
Axis Bank
April 28, 2021 7
Exhibit 13: We revise our TP to Rs770 (from Rs725) based on 2.0x (from 1.9x)
Mar-23 ABV
PT calculation and upside
Terminal growth 5.0%
Market ri sk premium 7.0%
Risk-free rate 6.3%
Adjusted beta 1.08
Cost of equity 13.8%
Fair price - P/ABV 770
Target P/ABV 2.0
Target P/E 14.9
Current price, Rs 700
Upside (%) 10%
Dividend yield (%) 1%
Total return (%) 11%
Source: Company, PL
Exhibit 14: AXSB’s one year forward P/ABV trends
0.9
1.3
1.7
2.1
2.5
2.9
3.3
Apr-
17
Jul-17
Oct-17
Jan-1
8
Apr-
18
Jul-18
Oct-18
Jan-1
9
Apr-
19
Jul-19
Oct-19
Jan-2
0
Apr-
20
Jul-20
Oct-20
Jan-2
1
Apr-
21
P/ABV 3 yr avg. avg. + 1 SD avg. - 1 SD
Source: Company, PL
Axis Bank
April 28, 2021 8
Income Statement (Rs. m)
Y/e Mar FY20 FY21 FY22E FY23E
Int. Earned from Adv. 4,83,030 4,79,189 5,30,474 6,14,533
Int. Earned from invt. 1,12,460 1,25,582 1,58,331 1,81,107
Others 30,862 31,682 25,521 20,380
Total Interest Income 6,26,352 6,36,453 7,14,325 8,16,019
Interest Expenses 3,74,290 3,44,062 3,74,289 4,18,272
Net Interest Income 2,52,062 2,92,391 3,40,036 3,97,748
Growth(%) 16.9 8.2 13.8 14.7
Non Interest Income 1,55,366 1,48,380 1,61,735 1,77,908
Net Total Income 4,07,428 4,40,772 5,01,771 5,75,656
Growth(%) 14.8 0.4 11.6 13.5
Employ ee Expenses 53,210 61,640 70,270 78,702
Other Expenses 1,12,107 1,14,619 1,26,081 1,41,210
Operating Expenses 1,73,046 1,83,752 2,04,036 2,27,800
Operating Profit 2,34,381 2,57,020 2,97,734 3,47,856
Growth(%) 23.3 9.7 15.8 16.8
NPA Prov ision 1,27,555 79,070 91,687 94,544
Total Prov isions 1,85,339 1,68,960 1,38,057 1,34,932
PBT 49,042 88,060 1,59,677 2,12,924
Tax Prov ision 32,770 22,173 40,558 54,083
Effective tax rate (%) 66.8 25.2 25.4 25.4
PAT 16,272 65,887 1,19,119 1,58,841
Growth(%) (31.6) 304.9 80.8 33.3
Balance Sheet (Rs. m)
Y/e Mar FY20 FY21 FY22E FY23E
Face v alue 2 2 2 2
No. of equity shares 2,822 3,064 3,064 3,064
Equity 5,643 6,128 6,128 6,128
Networth 8,49,478 10,16,030 11,35,150 12,64,260
Growth(%) 27.4 19.6 11.7 11.4
Adj. Networth to NNPAs 93,604 69,935 70,630 66,562
Deposits 64,01,049 70,73,061 78,51,097 88,71,740
Growth(%) 16.7 10.5 11.0 13.0
CASA Deposits 26,37,061 31,77,490 34,85,887 39,92,283
% of total deposits 41.2 44.9 44.4 45.0
Total Liabilities 91,51,648 99,61,184 1,08,99,187 1,21,66,136
Net Adv ances 57,14,242 62,37,202 68,60,922 76,84,233
Growth(%) 15.5 9.2 10.0 12.0
Inv estments 15,67,343 22,61,196 25,65,971 28,70,651
Total Assets 91,51,648 99,61,184 1,08,99,187 1,21,66,136
Growth (%) 14.3 8.8 9.4 11.6
Asset Quality
Y/e Mar FY20 FY21 FY22E FY23E
Gross NPAs (Rs m) 3,02,338 2,53,148 2,70,413 2,37,022
Net NPAs (Rs m) 93,604 69,935 70,630 66,562
Gr. NPAs to Gross Adv.(%) 5.3 4.1 3.9 3.1
Net NPAs to Net Adv. (%) 1.6 1.1 1.0 0.9
NPA Coverage % 69.0 72.4 73.9 71.9
Profitability (%)
Y/e Mar FY20 FY21 FY22E FY23E
NIM 3.2 3.4 3.6 3.7
RoAA 0.2 0.7 1.1 1.4
RoAE 2.1 7.1 11.1 13.2
Tier I 14.5 16.5 16.8 16.9
CRAR 17.5 19.1 20.4 20.1
Source: Company Data, PL Research
Quarterly Financials (Rs. m)
Y/e Mar Q1FY21 Q2FY21 Q3FY21 Q4FY21
Interest Income 1,65,389 1,60,629 1,54,984 1,55,452
Interest Expenses 95,536 87,368 81,256 79,902
Net Interest Income 69,853 73,261 73,728 75,550
YoY growth (%) 19.5 20.1 14.3 11.0
CEB 16,520 27,520 28,896 33,760
Treasury - - - -
Non Interest Income 25,867 38,072 37,760 46,683
Total Income 1,91,256 1,98,701 1,92,744 2,02,135
Employ ee Expenses 14,061 14,129 16,774 16,676
Other expenses 23,215 28,227 33,759 36,910
Operating Expenses 37,276 42,356 50,533 53,586
Operating Profit 58,444 68,976 60,955 68,647
YoY growth (%) (0.8) 15.9 6.1 17.3
Core Operating Profits 52,224 61,286 54,803 60,757
NPA Prov ision 35,120 5,880 10,530 27,540
Others Provisions 44,164 45,807 46,043 32,950
Total Prov isions 44,164 45,807 46,043 32,950
Profit Before Tax 14,280 23,170 14,912 35,697
Tax 3,158 6,343 3,746 8,926
PAT 11,122 16,827 11,166 26,771
YoY growth (%) (18.8) (1,601.3) (36.4) (292.9)
Deposits 62,81,503 63,54,543 65,41,403 70,73,061
YoY growth (%) 16.2 8.8 10.6 10.5
Advances 56,13,408 57,63,725 58,27,539 62,37,202
YoY growth (%) 12.9 10.5 5.9 9.2
Key Ratios
Y/e Mar FY20 FY21 FY22E FY23E
CMP (Rs) 700 700 700 700
EPS (Rs) 6.0 22.4 38.9 51.8
Book Value (Rs) 301 332 371 413
Adj. BV (70%)(Rs) 268 304 342 385
P/E (x) 115.9 31.2 18.0 13.5
P/BV (x) 2.3 2.1 1.9 1.7
P/ABV (x) 2.6 2.3 2.0 1.8
DPS (Rs) 1.0 - - 8.0
Dividend Payout Ratio (%) 20.1 - - 18.7
Dividend Yield (%) 0.1 - - 1.1
Efficiency
Y/e Mar FY20 FY21 FY22E FY23E
Cost-Income Ratio (%) 42.5 41.7 40.7 39.6
C-D Ratio (%) 89.3 88.2 87.4 86.6
Business per Emp. (Rs m) 163 162 161 163
Prof it per Emp. (Rs lacs) 2 8 13 16
Business per Branch (Rs m) 2,676 2,897 2,785 2,725
Prof it per Branch (Rs m) 4 14 23 26
Du-Pont
Y/e Mar FY20 FY21 FY22E FY23E
NII 3.23 3.37 3.56 3.75
Total Income 5.22 5.08 5.25 5.42
Operating Expenses 2.22 2.12 2.13 2.15
PPoP 3.00 2.96 3.11 3.28
Total prov isions 2.37 1.95 1.44 1.27
RoAA 0.21 0.76 1.25 1.50
RoAE 2.15 7.06 11.07 13.24
Source: Company Data, PL Research
Axis Bank
April 28, 2021 9
Price Chart Recommendation History
No. Date Rating TP (Rs.) Share Price (Rs.)
1 06-Apr-21 Accumulate 725 685
2 28-Jan-21 Accumulate 725 632
3 11-Jan-21 Accumulate 750 673
4 29-Oct-20 Accumulate 570 505
5 09-Oct-20 Hold 480 468
6 22-Jul-20 Hold 480 446
7 08-Jul-20 Hold 475 444
8 29-Apr-20 Hold 475 455
Analyst Coverage Universe
Sr. No. Company Name Rating TP (Rs) Share Price (Rs)
1 Axis Bank Accumulate 725 685
2 Bank of Baroda BUY 82 73
3 Federal Bank Accumulate 88 76
4 HDFC Bank BUY 1,735 1,429
5 HDFC Life Insurance Company Reduce 660 705
6 ICICI Bank BUY 700 570
7 ICICI Prudential Life Insurance Company Accumulate 504 452
8 IDFC First Bank Sell 32 54
9 IndusInd Bank BUY 1,195 937
10 Kotak Mahindra Bank Hold 1,912 1,759
11 Max Financial Services Accumulate 995 890
12 Punjab National Bank Accumulate 43 37
13 SBI Life Insurance Company BUY 1,080 919
14 South Indian Bank BUY 10 8
15 State Bank of India BUY 445 354
PL’s Recommendation Nomenclature (Absolute Performance)
Buy : > 15%
Accumulate : 5% to 15%
Hold : +5% to -5%
Reduce : -5% to -15%
Sell : < -15%
Not Rated (NR) : No specific call on the stock
Under Review (UR) : Rating likely to change shortly
303
434
564
695
825
Ap
r -
18
Oct
- 18
Ap
r -
19
Oct
- 19
Ap
r -
20
Oct
- 20
Ap
r -
21
(Rs)
Axis Bank
April 28, 2021 10
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