Shares of Axis Bank are in focus today after the lender reported Q2 earnings that missed profit after tax estimates, according to Motilal Oswal. The brokerage attributed the 8% miss from its profit estimates to higher provisions. Provisioning expenses came at at Rs 3,550 crore (18% higher than MOFSLe). The bank made a one-time standard asset provisioning of Rs 1231 crore following an RBI inspection related to two discontinued crop loan variants. Advertisement

The brokerage has a neutral stance on the lender and fixed a target price of Rs 1,300 ( up 11% from previous close of Rs 1170.) The brokerage projects FY27 RoA/RoE at 1.6%/14.4% for the lender.

"Business growth has gained traction, with deposits expected to grow at a healthy rate, while the bank aims to outperform systemic credit

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