Axis Bank - Performance beat street - Edelweiss

Axis Bank reported 22% YoY growth in PAT to INR13.5bn (ahead of our INR13.2bn estimate) in Q3FY13. In a nutshell, the bank has once again performed on the key concern area, i.e. asset quality. Incremental stress buildup (Slippages-INR5.4bn + Restructuring-INR3.7bn) came well within the guided range.

For 9mFY13, the buildup has been at INR29.1bn vis-àvis the annual guidance of INR50bn, i.e. well within the guided range. Strategy to build up the retail banking piece is on track with retail fees (up 35% YoY), asset (up 45% YoY to 27% of total loans) and liabilities (SA + Retail TD now forms 47% of deposits vis-a-vis 44% a year back) performing better than the whole bank.

We maintain 'BUY'/sector Outperformer with a target price of INR1710.

Source : Equity Bulls

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