Citi has maintained its ‘Neutral’ rating on Axis Bank with a revised target price of Rs 1,290, following a Q2 performance that included profit driven by tax write-backs and treasury gains. The bank’s Profit After Tax (PAT) of Rs 69 billion was higher than expected due to these one-off factors. However, Citi raised concerns over the bank’s core credit cost, which came in higher than expected, and slower loan growth, which lagged at 11.4% year-on-year. Constraints in deposit growth and a narrowing loan-to-deposit ratio could hinder the bank’s future growth prospects.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as investment advice. Please seek independent financial advice before making any investment decisions.
