IIFL has maintained its ‘Buy’ rating on Axis Bank but reduced its target price to Rs 1,360 from Rs 1,380, citing slower Net Interest Income (NII) growth. The brokerage has also cut its estimates by 1-9%, expecting muted earnings per share (EPS) growth until the first half of FY26. Elevated slippages and buffer provisions have led to higher credit costs, but IIFL believes the profitability gap with peers such as ICICI Bank and Kotak Mahindra Bank is narrowing, which could reduce the valuation gap in the future.
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