Axis Bank’s gross advances increased 6.3 per cent sequentially to Rs 12.4 lakh crore in January-April, according to provisional data released by the lender on Sunday. On a year-on-year basis, they grew by 18.4 per cent.
The bank’s total deposits also increased, rising 6 per cent sequentially and 13.9 per cent year-on-year to Rs 13.4 lakh crore. Current account and savings account (CASA) deposits rose 7.3 per cent sequentially to Rs 5.3 lakh crore. However, they increased 10.6 per cent year-on-year.
The bank’s core net interest income grew by 5 per cent to Rs 14,287 crore, helped by a 14 per cent loan growth but restricted by a 0.29 per cent compression in the net interest margin at 3.64 per cent.
The gross non-performing assets ratio improved to 1.40 per cent from 1.46 per cent in the quarter-ago period, while the overall provisions increased to Rs 2,245.92 crore from Rs 2,155.63 crore in the year-ago period.
Axis Bank share price target
In its latest banking note, brokerage Nomura said it prefers banks that perform well on two parameters: residual liquidity coverage ratio (LCR) headroom, indicating near-term loan growth capacity independent of deposit momentum and liability franchise quality, which supports net interest margin (NIM) resilience.
Nomura maintained a ‘Buy’ rating on Axis Bank, revising its target price to Rs 1,500 from Rs 1,540.
Axis Bank share price
Shares of Axis Bank closed at Rs 1,198.15 on Thursday, April 2 — which is 0.44 per cent above the previous close of Rs 1,192.85 per share. During the day, the counter swung between Rs 1,202.80 and Rs 1,150.50 apiece.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
