Axis Bank

Axis Bank

History & Background

• Axis Bank began operations in 1994 as UTI Bank and was renamed Axis Bank in July 2007.
• It is currently the third-largest private sector bank in India.

Branch & Distribution Network

• By June 30, 2025, the distribution network grew to:
  • 5,879 branches and extension counters
  • 235 Business Correspondent Banking Outlets (BCBOs) across 3,192 centres
  • 14,134 ATMs and cash recyclers nationwide
  • Axis Virtual Centre across eight locations, employing over 1,825 Virtual Relationship Managers

Recommendation by Broking Firms (Updated on 22th July 2025)
Issuing Company	Rating	Target Price
Antique Stock Broking	Buy	1300
B&K Securities	Hold	1300
Motilal Oswal Financial Services	Neutral	1300
HDFC Securities	Add	1290
J M Financial	Buy	1330
Kotak Institutional Equities	Buy	1450
Systematix Institutional Equities	Buy	1375
Average Target Price		1335

*Reports are attached at the bottom of page*

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1. Net Interest Margin (NIM)

• NIM stood at 3.8% in Q1 FY26, down 25 bps YoY and 17 bps QoQ.
• Full impact of Feb 2025’s 25 bps repo rate cut absorbed; further decline expected in Q2 FY26.
• Bank maintains through-cycle NIM target of 3.8% over the next 15–18 months.

2. Asset Quality

• Asset quality in personal loans yet to stabilize.
• Technical slippages from changes in loan recognition policy (cash credit, OTS).
• Reported GNPA at 1.57%, adjusted GNPA at 1.41%.
• Slippage ratio (adjusted): 2.10%, credit cost: 1.09%.
• ~80% of NPAs are fully secured, limiting economic loss.

3. Advances

• Loan growth: 8.1% YoY, led by SME and mid-corporates (+18% YoY).
• Retail accounts for 60% of loan book; focus remains on NIM-supportive growth.

4. Deposits

• Total deposits grew 9% YoY, with 12% growth in retail & small business deposits.
• Strong momentum in premium and salary accounts.

5. Costs & Income

• Operating expenses moderated (–5% QoQ); cost-to-assets at 2.41%.
• Non-interest income up 25% YoY, led by trading gains and fee growth.

Reports