Nomura has reaffirmed its ‘Buy’ rating on Axis Bank with a target price of Rs 1,380, following a steady Q2 performance. Loan and deposit growth were soft but in line with expectations. Treasury gains offset the softer core Pre-Provision Operating Profit (PPOP), and one-off tax gains were utilized to shore up provision buffers. Nomura remains positive on the stock, citing favorable risk-reward dynamics, with a return on equity (RoE) projection of 15-16% for FY26.
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