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Axis Bank (Target price - ₹1575, Buy) - “Steady Quarter, Fortified Balance Sheet”

ICICIdirect Research 30 Apr 2026 DISCLAIMER

Core operating performance remained steady, with advances growing ~14% YoY (6.4% QoQ), led by strong traction in corporate and SME segments. Retail growth remained relatively moderate, though supported by improving disbursements (+24% YoY, +19% QoQ).
NIMs remained broadly stable at 3.62%, while other income was impacted by treasury MTM losses. Asset quality continued to improve, with GNPA/NNPA at ~1.23%/0.37% and credit cost moderating to ~37 bps, supported by improving retail stress indicators and recoveries.
Reported earnings were influenced by one-off items, including a ₹2,001 crore standard asset provision (precautionary) and ₹2,193 crore tax write-backs, which largely offset each other at the P&L level.
Strong capital buffer, focus on sustaining growth momentum and ‘through-the-cycle’ NIM guidance of 3.8% is seen to aid earnings. Thus, we maintain positive stance on the stock.

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