Shares of Axis Bank surged over 4% on Friday (October 18) to ₹1,180 apiece, as the bank delivered a decent 02 performance. Net profit rose to ₹6,918 crore, driven by robust core lending income and strong credit demand. The bank's results prompted brokerages to issue positive calls on the stock

Morgan Stanley gave an Overweight call with a target price of ₹1,445 per share. It highlighted that Axis Bank had underperformed after 01 due to asset quality concerns, but the situation improved in 02

Credit costs were significantly lower quarter-on-quarter (QoQ), and the bank used one-off gains to boost its contingency provisions. While core revenue growth was muted, Morgan Stanley expects improvement as deposit growth picks up in the coming year.

On the other hand, Nomura issued a Buy rating with a target of ₹1,380. It noted that Axis Bank had a steady quarter despite muted expectations. Loan and deposit growth were soft but in line with market estimates. Lower net slippages and higher write-offs helped redige gross non-performing loans (NPLs).

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Published on:Oct 18, 2024 10:00 AM IST