Axis Bank - Discomforting growth in retail - Kotak

Axis Bank delivered another strong quarter on key operating metrics but aggressive shift in focus to retail (~45% yoy growth, 27% of loans) is raising a new concern on the sustainability of this strategy. However, the liability profile continues to impress and strong capital gives strength to the balance sheet against a sharper-than-expected deterioration of loans.

Retain our ADD rating as valuation expansion is dependent on the improvement in business environment - which is likely to be disappointing, in our view.

Source : Equity Bulls

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