IIFL is bullish on Axis Bank and has recommended buy rating on the stock with a target of Rs 1350 in its July 18, 2012 research report.
"On expected lines, Axis Banks advances were largely flat qoq but represented a healthy growth of 24-25% yoy (adjusted for the sharp rupee depreciation). A marked trend in the banks annual growth pattern has been a marginal expansion in first half followed by robust growth in the second half. Retail loans grew by robust 8% qoq and 50% yoy increasing its share in overall advances to 23.7% (up 160bps qoq 320bps yoy). This is in sync with the banks stated objective of taking the retail share to 29-30% by FY15."
"In our view, apart from lower delinquencies, the changing deposit mix (rising share of retail TDs) could be accelerating this movement. Axis Bank has been witnessing strong growth in key retail products of mortgages and auto loans (combined 88% of retail book). Corporate loans grew by 2% qoq and 32% yoy aided by working capital loans and