Target: ₹1,205
CMP: ₹901.50
We attended Axis Bank ‘Analyst Day 2022’ event. Key managerial persons including MD & CEO Amitabh Chaudhry interacted with the analysts and outlined key developments.
While recalling strong Q2-FY23 performance, the management expressed confidence for consistent and sustained earnings and stated that the bank has structurally improved for delivering stronger NIMs. Advances growth is guided to be 4-6 per cent higher than the industry growth over the medium term driven by Bharat Banking on expectations of 3x growth in rural consumption in this decade.
Axis Bank expects deposit growth to remain muted for the next 2-3 quarters; however it targets to 5-6 per cent higher than industry deposits growth to fund the loan growth. While guiding NIM of 3.7-3.8 per cent range in the wake of strong 3.96 per cent in Q2-FY23, Axis Bank expects cost-to-assets ratio to normalise around 2 per cent by FY25.
To make Axis Bank a distinctive winner, strategic bet for the long term to remain on: best in class digital, technology and data analytic capabilities; focus on higher RAROC ‘Bharat Banking’ and ‘ ‘MSME+MC’ segments; integrated play leveraging on partnership and ecosystems; and delivering distinctiveness - customer obsession and empowering employees.