Axis Bank Ltd.

August 26, 2017 . Equities Desk

Transition phase continues

Axis Bank is the third largest private sector bank in India. The Bank has a large footprint of 3,385 domestic branches (including extension counters) and 14,311 ATMs spread across the country.

Valuation: Axis Bank reported an in-line operating as well as business performance during Q1FY18 while continuing to focus on consolidation of balance sheet. Though asset quality overhang still persists, we expect the bank to complete the clean-up of its balance sheet by FY19E. Further, the bank continues to deliver superior performance across its retail franchise while the corporate segment remains the pain point across parameters. Thus, we maintain BUY rating on the stock with a revised target price (TP) of Rs. 543 (P/ABV of 2.2x for FY19E).

Research report Axis Bank Ltd. (1)

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