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consensus. However led by sharply lower provisions, net profit at Rs12.8bn was ahead of expectations CASA at 41.5% restricted NIMs compression to 20bps to 3.6%, inline with our estimates
EPS change FY13E/14E (%) Target Price change (%) Nifty Sensex
Price Performance
(%) Absolute Rel. to Nifty
Source: Bloomberg
at Rs5.9bn (30% of op GNPAs) drive asset quality even as rest. assets at Rs5.9bn was slightly on the higher side
1M (1) (1)
3M 4 3
corporates witnesses major shift towards lower side (AA to BBB). Maintain ACCUMULATE with TP of Rs1,380
1125
-6
1000
-14
875
-22
750 Apr-11
Jun-11
Aug-11
Axis Bank (LHS)
Oct-11
Dec-11
Feb-12
-30 Apr-12
Source: Bloomberg
Stock Details
Sector Bloomberg Equity Capital (Rs mn) Face Value(Rs) No of shares o/s (mn) 52 Week H/L Market Cap (Rs bn/USD mn) Daily Avg Volume (No of sh) Daily Avg Turnover (US$mn)
Kashyap Jhaveri kashyap.jhaveri@emkayglobal.com +91 22 6612 1249 Pradeep Agrawal pradeep.agrawal@emkayglobal.com +91 22 6612 1340 Aalok Shah aalok.shah@emkayglobal.com +91 22 6612 1336 FY2011 FY2012A FY2013E FY2014E
Valuation table
Y/E March 31 Net income 111,951 134,379 154,333 181,699 Net profit 33,885 42,682 48,777 58,840 EPS (Rs) 82.5 103.3 113.7 136.1 ABV (Rs) 440.8 528.7 633.1 736.8 RoA (%) 1.6 1.6 1.6 1.7 RoE (%) 19.3 20.4 19.1 19.2 PE (x) 14.0 11.1 9.7 8.0 P/ABV (x) 2.5 2.1 1.7 1.5
Result Update
Axis Bank
Result Update
Q4FY11 17,010 14,504 12,311 31,514 13,306 42.2 3,960 12.6 9,346 29.7 18,208 57.8 2,544 1,760 15,664 5,463 10,201 0 10,201 24.8
Q1FY12 17,241 11,679 10,570 28,920 13,335 46.1 5,100 17.6 8,235 28.5 15,585 53.9 1,758 1,530 13,827 4,403 9,424 0 9,424 22.9
Q2FY12 20,073 12,349 11,207 32,422 14,665 45.2 4,986 15.4 9,679 29.9 17,756 54.8 4,056 2,470 13,701 4,497 9,203 0 9,203 22.3
Q3FY12 21,403 14,298 12,210 35,701 15,109 42.3 5,420 15.2 9,689 27.1 20,592 57.7 4,223 3,340 16,369 5,346 11,023 0 11,023 26.7
Q4FY12 21,461 15,876 13,270 37,337 16,962 45.4 5,296 14.2 11,666 31.2 20,376 54.6 1,393 1,393 18,983 6,210 12,773 0 12,773 30.9
YoY (%) 26.2 9.5 7.8 18.5 27.5 33.7 24.8 11.9 -45.2 -20.9 21.2 13.7 25.2 25.2 24.4
QoQ (%) 0.3 11.0 8.7 4.6 12.3 -2.3 20.4 -1.1 -67.0 -58.3 16.0 16.2 15.9 15.9 15.7
YTD' 12 80,178 54,202 47,256 134,380 60,071 44.7 20,802 15.5 39,269 29.2 74,309 55.3 11,430 8,733 62,879 20,456 42,422 0 42,422 102.8
YTD' 11 65,630 46,321 37,904 111,951 47,794 42.7 16,139 14.4 31,655 28.3 64,157 57.3 11,497 9,021 52,660 17,472 35,188 0 35,188 86.0
YoY (%) 22.2 17.0 24.7 20.0 25.7 28.9 24.1 15.8 -0.6 -3.2 19.4 17.1 20.6 20.6 19.6
Large corp/ Retail drive advances growth; PSL targets may still be way off
The banks advances grew by a strong 19.2%yoy to Rs1.7tn led by strong growth in Retail and large corporate book. While retail book grew by a stellar 35.3%yoy to Rs376bn, large corporate book grew by a healthy 19.9%yoy to Rs911bn. The growth in retail book was driven by strong growth in all the segments (ex personal loans); mortgages which constitute 75% of the total retail book grew by 49.3%yoy to Rs282bn. The large spike in the agriculture loans was more seasonal in nature for meeting year end PSL targets. However, since as % of last years loan book the agricultural loans stood at 12.2% vs 16% last year, we believe that PSL targets are still way off the norm and may continue to put pressure on NIMs next year. Advances mix
Rs bn Large corporates Mid-corporate/SME Agriculture Retail Personal loans Mortgages Car Loans Credit cards Others Total
Source: Company, Emkay Research
YoY (%) 19.9 11.2 0.1 35.3 -42.0 49.3 60.0 35.3 8.3 19.2
QoQ (%) 8.3 15.0 62.1 12.9 12.9 12.9 12.9 125.9 -9.6 14.1
% of total 53.6 14.0 10.2 22.1 1.3 16.6 2.9 0.4 0.9 100.0
Emkay Research
27 April 2012
Axis Bank
Result Update
Q4FY11 5,381 1,070 190 3,120 2,550 12,311 581 1,612 14,504
Q1FY12 4,560 990 160 2,760 2,100 10,570 702 407 11,679
Q2FY12 4,430 970 150 2,910 2,740 11,200 277 866 12,349
Q3FY12 5,390 1,090 130 3,280 2,320 12,210 1,180 908 14,298
Q4FY12 5,590 1,280 130 3,770 2,490 13,260 1,460 1,146 15,876
YoY (%) 3.9 19.6 -31.6 20.8 -2.4 7.7 151.2 -28.9 9.5
QoQ (%) 3.7 17.4 0.0 14.9 7.3 8.6 23.7 26.2 11.0
YTD' 12 19,970 4,330 570 12,720 9,650 47,240 3,619 3,327 54,202
YTD' 11 15,591 3,880 700 10,010 7,710 37,891 4,970 3,448 46,321
YoY (%) 28.1 11.6 -18.6 27.1 25.2 24.7 -27.2 -3.5 17.0
Note: The growth in fee income on yoy basis adjusted for change in accounting policy at 39%
Emkay Research
27 April 2012
Axis Bank
Result Update
Emkay Research
27 April 2012
Axis Bank
Result Update
Key Financials
Profit and loss (Rs mn)
(Year Ending Mar 31) Net interest income Other income Net income Operating expenses Pre provision profit PPP excl treasury Provisions Profit before tax Tax Tax rate Profit after tax FY11 65,630 46,321 111,951 47,794 64,157 67,820 12,793 51,364 17,479 34% 33,885 FY12A 80,178 54,202 134,379 59,811 74,568 78,187 11,430 63,138 20,456 32% 42,682 FY13E 91,592 62,741 154,333 68,917 85,417 89,036 13,262 72,154 23,377 32% 48,777 FY14E 108,463 73,236 181,699 80,571 101,128 105,108 14,087 87,041 28,201 32% 58,840
Key Ratios
(Year Ending Mar 31) NIM Non-II/avg assets Fee income/avg assets Opex/avg assets Provisions/avg assets PBT/avg assets Tax/avg assets RoA RoAE GNPA (%) NNPA (%) FY11 3.1 2.2 2.8 2.3 1.0 2.4 0.8 1.6 19.3 1.0 0.3 FY12A 3.0 2.1 2.8 2.3 0.7 2.4 0.8 1.6 20.4 0.9 0.3 FY13E 3.0 2.0 2.9 2.2 0.7 2.4 0.8 1.6 19.1 1.0 0.3 FY14E 3.0 2.1 2.8 2.3 0.7 2.4 0.8 1.7 19.2 1.0 0.3
Valuations
(Year Ending Mar 31) Net profit (Rs mn) Shares in issue (mn) EPS (Rs) PER (x) FDEPS(Rs) FDPER (x) Book value (Rs) P/BV (x) Adj book value (Rs) P/ABV (x) P/PPP (x) Dividend yield (%) FY11 33,885 411 82.5 13.4 79.0 14.0 450.8 2.4 440.8 2.5 7.1 1.3 FY12A 42,682 413 103.3 10.7 99.5 11.1 540.1 2.0 528.7 2.1 6.1 1.5 FY13E 48,777 429 113.7 9.7 113.7 9.7 646.9 1.7 633.1 1.7 5.5 1.6 FY14E 58,840 432 136.1 8.1 137.2 8.0 752.0 1.5 736.8 1.5 4.7 2.1
Emkay Research
27 April 2012
Axis Bank
Result Update
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Emkay Research
27 April 2012
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