Bernstein has reiterated its ‘Outperform’ rating on Axis Bank, with a target price of Rs 1,250. Despite some sequential improvement in credit costs, the brokerage expressed concerns over the bank’s weak loan growth and lingering asset quality issues. Bernstein highlighted that the bank’s ability to slow down operating expenses (Opex) and utilize high net operating income (NOI) could help push its Return on Assets (RoA) above 1.8%. Overall, the Q2 performance provided little optimism, but the long-term outlook remains intact.
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