Morgan Stanley remains bullish on Axis Bank, maintaining its ‘Overweight’ rating with a target price of Rs 1,445. The brokerage highlighted improvements in asset quality in Q2, with credit costs coming in lower on a quarter-on-quarter basis. The bank also used one-off gains to increase its contingency provisions, providing a buffer for the future. Although core revenue growth remained muted, Morgan Stanley expects better performance as deposit growth picks up in the next year, leading to an improved outlook for Axis Bank.
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