Axis Bank - Consensus beat as expected - ESPIRITO Santo Securities

Axis Bank reported Q3FY14 PAT of Rs16bn, 10% above consensus, primarily driven by better than expected NIMs, lower provisioning and higher other income due to repatriation of Rs1.24bn in profits from foreign offices. Balance sheet trends remain healthy with strong CASA and retail deposits momentum, retail and SME advances growth outpacing overall advances growth, and asset quality trends within management guidance. Furthermore, the bank provided clarity on its power sector exposure, which should provide comfort on asset quality. We expect consensus to upgrade estimates post the results. Re-iterate Buy with unchanged FV of Rs1,297.

Source : Equity Bulls

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