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Net interest income (NII) rose 5.5% year-on-year to Rs 13,810.5 crore from Rs 13,089 crore. The bank’s net interest margin (NIM) improved by 4 basis points sequentially to 3.97%, while core operating profit grew 11% YoY to Rs 10,575 crore.
Asset quality also improved, with gross NPA ratio (GNPA) at 1.28%, down 15 bps YoY and 18 bps QoQ, and net NPA (NNPA) at 0.33%, down 2 bps QoQ.
Advances and Deposits
Axis Bank’s balance sheet expanded 9% YoY to Rs 16.09 lakh crore as of March-end. Total deposits grew 10% YoY and 7% QoQ, with current account deposits rising 16%. The CASA ratio improved to 41% from 39% in Q3FY25.
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Should you buy, sell, or hold Axis Bank stock? Here’s what brokerages say:
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Nomura
Nomura has maintained a ‘Buy’ rating on Axis Bank with a target price of Rs 1,450, compared to the current level of Rs 1,230.
The brokerage noted that a pickup in loan growth will be a key driver going forward. It expects the bank to deliver a loan and deposit growth of 12–13% CAGR over FY25 to FY27. Nomura also believes the current valuation of 1.7 times FY26 book value per share appears inexpensive.
Investec
Investec has maintained a ‘Buy’ rating on Axis Bank with a target price of Rs 1,430 (earlier Rs 1,298).
It called Q4 a steady quarter and noted that continued momentum will be key for a re-rating. While NII and core PPOP were in line, lower credit costs led to a PAT beat.
The brokerage flagged soft loan growth but highlighted healthy deposit growth and improvement in asset quality. It has also factored in 100 bps repo rate cuts in FY26, which could lower NIM by 20 bps YoY, alongside elevated CD ratios and credit cost.
Nuvama
Nuvama has maintained a ‘Buy’ rating on Axis Bank and raised its target price to Rs 1,400 from Rs 1,220.
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The brokerage noted sequential traction in growth and NPLs, with corporate credit asset quality stabilising. However, personal loan asset quality may take a few more quarters to improve. The brokerage added that tighter asset classification may slightly raise credit costs and lower recoveries in FY26.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
