Axis Bank posted a mixed performance in Q4FY25, with PPOP in line and a 10% beat in PAT. However, adjusting for a one-time provision reversal of ₹8,000 crore, CLSA noted the profit was broadly in line and described the overall quarter as tepid.
A key concern for CLSA was the slowing deposit momentum, which rose just 2% QoQ — lower than the usual 4–5% seen in Q4 — and dropped below 10% YoY growth. Loan growth also moderated to 8%. However, the bank’s net interest margin improved by 4bps QoQ, a trend consistent with other large private sector banks.
CLSA continues to rate the stock as ‘Outperform’, with a target price of ₹1,400, but cautioned that growth momentum needs to recover to justify a re-rating.
Disclaimer: The above views are of the broker’s and not the author or the publication’s. Please consult a certified financial advisor before making investment decisions.
