Axis Bank (AXSB IN) – Q4FY26 Result Update – Deposit growth a key to achieve targeted loan growth – BUY
Published on 26 Apr 2026
AXSB saw a mixed quarter as better fees and asset quality was offset by miss on NII and opex. NII growth at 1.2% QoQ was lower to loan growth of 6.4% led by back-ended corporate accretion. Due to tax benefit of INR 21.9bn, buffer provisions of INR 20bn were created. We raise loan growth for FY27/28E by 100bps each to 13%. However, with CET-1 of ~15%, LDR of 92% and LCR of 117%, deposit growth would be a key driver to loan growth. We trim NIM for FY27/28E by avg. 10bps that would be offset by better loan growth/fees/opex; cut core PAT by avg. 2%. We keep multiple at 1.7x but as we roll forward to FY28 core ABV, raise TP to INR 1,600 from INR 1,500. Retain ‘BUY’.
