JRG Securities is bullish on Axis Bank and has recommended accumulate rating on the stock with a target of Rs 1463 in its August 17, 2011 research report...
JRG Securities is bullish on Axis Bank and has recommended accumulate rating on the stock with a target of Rs 1463 in its August 17, 2011 research report.
“Axis Bank Limited or “Axis” is the third largest private sector bank in Indian in terms of revenue and provides whole host of services in the Banking and Financial sector. It operates in four segments namely, treasury operation, trading operations, retail banking and corporate/wholesale banking and other banking business, which includes para banking activities. It offers its diversified services through wide network of more than 1281 branches (including 169 Service Branches/CPCs) and has a 6270 ATMs (As of Mar, 11).”
“Despite its huge base, Axis has exhibited strong and one of the most consistent growth in its Deposits and Advances. Over the past five years (till FY 11), the total deposits of the bank grew at a CAGR of over 36% to Rs 189,238 Crore (FY 11) while its advances growth has been even stronger at around 45% CAGR to Rs 142,408 Crore (FY 11). For FY 11, out if its total advances, corporate advances grew 44.6% to 75,922 Crore whereas advances to SME segment and retail increased by 17.1% and 33.3% respectively. Under total deposits, low-cost CASA deposits stood at Rs 77,767 Crore wherein the CASA ratio was healthy at 39.4%. As of June, its CASA ratio stands at 40.5%.”
"Lately, the Indian Banking sector has been imputed by twin effects of slowing economy and continuously rising interest rates. Axis too witnessed some deceleration in its financial and operating performance over the past few quarters. However, despite the short term hiccups we are optimistic about the Long-term growth prospects of the sector and the stock and recommend an Accumulate rating for a target price of Rs 1463,” says JRG Securities research report.
JRG Securities is bullish on Axis Bank and has recommended accumulate rating on the stock with a target of Rs 1463 in its August 17, 2011 research report.
“Axis Bank Limited or “Axis” is the third largest private sector bank in Indian in terms of revenue and provides whole host of services in the Banking and Financial sector. It operates in four segments namely, treasury operation, trading operations, retail banking and corporate/wholesale banking and other banking business, which includes para banking activities. It offers its diversified services through wide network of more than 1281 branches (including 169 Service Branches/CPCs) and has a 6270 ATMs (As of Mar, 11).”
“Despite its huge base, Axis has exhibited strong and one of the most consistent growth in its Deposits and Advances. Over the past five years (till FY 11), the total deposits of the bank grew at a CAGR of over 36% to Rs 189,238 Crore (FY 11) while its advances growth has been even stronger at around 45% CAGR to Rs 142,408 Crore (FY 11). For FY 11, out if its total advances, corporate advances grew 44.6% to 75,922 Crore whereas advances to SME segment and retail increased by 17.1% and 33.3% respectively. Under total deposits, low-cost CASA deposits stood at Rs 77,767 Crore wherein the CASA ratio was healthy at 39.4%. As of June, its CASA ratio stands at 40.5%.”
"Lately, the Indian Banking sector has been imputed by twin effects of slowing economy and continuously rising interest rates. Axis too witnessed some deceleration in its financial and operating performance over the past few quarters. However, despite the short term hiccups we are optimistic about the Long-term growth prospects of the sector and the stock and recommend an Accumulate rating for a target price of Rs 1463,” says JRG Securities research report.
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