Target: ₹1,470CMP: ₹1,279.75We see Axis Bank emerging stronger in this leg of the upcycle led by a structural improvement in the franchise. Sustained earnings progression and NIMs & CET-1 gap gradually narrowing with its core peer is expected to result in improvement in valuation multiples. The bank is delivering higher risk-adjusted returns over cycles with lower growth in risk-weighted assets (RWA). The bank has also made steady progress in granularising deposits, as is evident from a 5 per cent reduction in deposit outflows in the last two years to 23.9 per cent as per LCR. Peak NIM contraction cycle is probably behind along with stable asset quality trends is likely to keep…
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Source: https://www.thehindubusinessline.com/markets/brokers-call-axis-bank-buy/article68363598.ece/amp/