Axis Bank - Results inline; slippages/recoveries surprise positively - Emkay

- Axis Bank (AXSB) Q4FY12 NII at Rs21.5bn inline with consensus. However led by sharply lower provisions, net profit at Rs12.8bn was ahead of expectations

- Sharp increase in LDR to 77% (71% in Q3FY12) and stable CASA at 41.5% restricted NIM's compression to 20bps to 3.6%, inline with our estimates

- Stable slippages at Rs5.1bn and higher recoveries/upgrades at Rs5.9bn (30% of op GNPAs) drive asset quality even as rest. assets at Rs5.9bn was slightly on the higher side

- Continues to surprise on asset quality but rating profile of corporates witnesses major shift towards lower side (AA to BBB). Maintain ACCUMULATE with TP of Rs1,380.

Source : Equity Bulls

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