Markets

Broker’s Call: Axis Bank (Buy)

BL Chennai Bureau | Updated on: Jul 04, 2022

ICICI Securities

Target: ₹1,050

CMP: ₹654.45

Axis Bank’s (Axis) FY22 annual report is themed ‘Open to a world of possibilities’, where Axis is setting out on a journey of distinctiveness to become an open, customer-centric and future-ready’. The CEO’s message states growth momentum is tremendous across focus segments.

Citi’s India consumer business transition and integration process is progressing well and remains well on track. Transaction closing is expected by Q4-FY23 and full integration 18 months thereafter; GPS strategy execution progressing well with 19 large transformational projects; in FY22, non-retail term deposits had risen 58 per cent, constituting over 20 per cent of overall deposits.

In FY22, it pivoted the growth in retail book towards identified focused segments like small business banking (60 per cent growth YoY) and rural and gradually accelerated growth across personal loans (up 15 per cent YoY) and credit cards (19 per cent growth YoY). Focused segments like mid-corporate, commercial banking and MNC registered 45 per cent, 26 per cent and 49 per cent YoY growth.

Retail banking constituted 64 per cent (vs 62 per cent in FY21) of the bank’s fee income. Axis Bank’s granular fee across third-party distribution grew 29 per cent on a YoY basis with investment and insurance-related fees up 48 per cent and 22 per cent YoY, respectively.

Published on July 04, 2022
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