INSUBCONTINENT EXCLUSIVE:
in the next two quarters, analysts tracking the banking sector believe.
The third largest private lender reported its worst ever quarterly
earnings Thursday while providing record sums of money to cover sticky loans, but analysts believe that the fear of reporting a full-year
reporting a full-year loss possibly weighed down on that decision, and now we believe the balance of Rs 9,000 crore will be classified as
estimates owing to lower net interest margin and lower loan base and higher credit costs as the balance of stress is recognised as
quarter as Rs 16,500 crore of fresh bad loans rocked the boat surprising everyone in the market.
Axis Bank shares gained 9 per cent on
Friday despite the downgrades by most of the brokerages
said Aalok Shah, analyst, Centrum Broking
lowered the target price to Rs 475 from Rs 605, IDBI Capital set the new target price at Rs 505 revising it from Rs 611
Brokerages such as Morgan Stanley, SBI Capital, Credit Suisse, HDFC Securities and Nomura have also lowered price targets.
Axis indicated
normalisation of credit cost from the second half of the current financial year as asset quality pressure is likely to remain in the next
earnings on sharp deterioration in asset quality and higher operating expenses, thus driving a 9 per cent decline in our FY20 estimated
compared to 22 per cent jump seen in HDFC Bank and 31 per cent rise in Kotak Mahindra Bank stock
The BSE Bankex gained 11 per cent during the period.
Its shares are currently trading at 1.9 times its FY20 estimated book value, which
according to some analysts looks attractive
despite higher stress and, consequently, credit cost rose to 6.7 per cent
