AXIS Bank - Earnings beat estimates but quality uncertain - Emkay

- AXIS Bank's (AXSB) Q4FY13 NII/PAT at Rs26.6/15.5bn beat estimate but lack quality. Beat driven by equity led NIM expansion, trading gains and recoveries even as Opex growth stays modest

- Slippages + restructuring came in a bit higher at Rs12bn (Rs4bn + Rs7.9bn). Does contingency provisions of Rs2.4bn with total provisions (specific+ others) at >100% of GNPAs

- Even as loan growth is in line with industry average at 16% yoy, it was also back ended. NII largely driven by benefits of QIP float and better LDR

- Lacks catalysts for core earnings though peripherals like trading gains provide overall earnings growth. Taking QIP float into account upgrade to HOLD with TP Rs1,500

Source : Equity Bulls

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