External broker reports(aggregated public sources), Axis Direct

Axis Direct

External broker reports(aggregated public sources)

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. 

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Equity Bottom-Up

<ul><li>The management continues to eye the scale-up of its gross advances to Rs 1 Lc Cr by FY26E, implying a CAGR growth of ~18% over FY24-26E.</li><li>We expect Retail, Agri to drive growth, registering a comfortable growth of 15%+ as the management engages new sales force deployment and partnering with other agencies/NBFCs.</li><li>C-D Ratio stood at ~73% and the management targets to take the C-D Ratio to 80% in the coming quarters. We factor-in advances growth of ~16% CAGR over FY24-26E.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

The management continues to eye the scale-up of its gross advances to Rs 1 Lc Cr by FY26E, implying a CAGR growth of ~18% over FY24-26E.We expect Retail, Agri to drive growth, registering a comfortable growth of 15%+ as the management engages new sales force deployment and partnering with other agencies/NBFCs.C-D Ratio stood at ~73% and the management targets to take the C-D Ratio to 80% in the coming quarters. We factor-in advances growth of ~16% CAGR over FY24-26E.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Karnataka Bank Ltd. - Stable Quarter; Capital Cushion to Aid Loan Growth

<ul><li>Margins are expected to remain under pressure until healthy growth in deposits resumes.</li><li>The bank is focusing on cross-selling and data analytics to grow its non-interest income.</li><li>Furthermore, the management remains confident of bringing down the C/I ratio to a sub-50% level. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Margins are expected to remain under pressure until healthy growth in deposits resumes.The bank is focusing on cross-selling and data analytics to grow its non-interest income.Furthermore, the management remains confident of bringing down the C/I ratio to a sub-50% level. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Karnataka Bank - Fundamental Changes Underway; Signs of Stress in Restructured Book

<ul><li>The bank’s advances grew by 10%/6% YoY/QoQ to Rs 66,936 Cr.</li><li>NIM remained flat YoY and declined by 10bps QoQ to 3.6%, and Q1FY23 having a higher base resulted in marginal growth in NII by 2.5% YoY to Rs 822 Cr.</li><li>Non-interest income reported a decline of 23% sequentially due to lower fee income and treasury movements. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

The bank’s advances grew by 10%/6% YoY/QoQ to Rs 66,936 Cr.NIM remained flat YoY and declined by 10bps QoQ to 3.6%, and Q1FY23 having a higher base resulted in marginal growth in NII by 2.5% YoY to Rs 822 Cr.Non-interest income reported a decline of 23% sequentially due to lower fee income and treasury movements. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Karnataka Bank - Asset Quality Improvement with Marginal Decline in Margins

Thematic (Sector/Industry)

<ul><li>The systemic credit growth (as reported till 22nd Sep’23) of ~20% YoY factoring in the HDFC-HDFC Bank merger (~15.3% YoY ex-HDFC) continues to remain healthy and largely driven by Retail and SME.</li><li>On the other hand, the corporate segment continues to pace gradually.</li><li>Taking cue from this, we expect Banks to maintain their credit growth momentum in Q2FY24E and factor-in healthy growth of ~15% YoY for banks under our coverage. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

The systemic credit growth (as reported till 22nd Sep’23) of ~20% YoY factoring in the HDFC-HDFC Bank merger (~15.3% YoY ex-HDFC) continues to remain healthy and largely driven by Retail and SME.On the other hand, the corporate segment continues to pace gradually.Taking cue from this, we expect Banks to maintain their credit growth momentum in Q2FY24E and factor-in healthy growth of ~15% YoY for banks under our coverage. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

<ul><li>Healthy AUM growth: The NBFCs under our coverage reported healthy AUM growth led by strong demand across segments.</li><li>Owing to seasonal weakness, disbursements for most financiers (ex-Vehicle financiers) moderated on a QoQ basis.</li><li>Management commentary on growth momentum sustaining is reassuring.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Healthy AUM growth: The NBFCs under our coverage reported healthy AUM growth led by strong demand across segments.Owing to seasonal weakness, disbursements for most financiers (ex-Vehicle financiers) moderated on a QoQ basis.Management commentary on growth momentum sustaining is reassuring.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Top Sector Ideas - Banking, Financial Services and Insurance (BFSI)

India

Karnataka Bank Ltd is a full-service bank. The Bank accepts deposits, makes loans and provides other services for the public.

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Karnataka Bank (KBL IN)

Karnataka Bank Ltd. - Stable Quarter; Capital Cushion to Aid Loan Growth

The management continues to eye the scale-up of its gross advances to Rs 1 Lc Cr by FY26E, implying a CAGR growth of ~18% over FY24-26E.

Axis Direct

Karnataka Bank - Fundamental Changes Underway; Signs of Stress in Restructured Book

Margins are expected to remain under pressure until healthy growth in deposits resumes. The bank is focusing on cross-selling and data analytics to...

Axis Direct

Karnataka Bank - Asset Quality Improvement with Marginal Decline in Margins

NIM remained flat YoY and declined by 10bps QoQ to 3.6%, and Q1FY23 having a higher base resulted in marginal growth in NII by 2.5% YoY to Rs 822 Cr.

Axis Direct

BFSI Q2FY24 Earnings Preview

The systemic credit growth (as reported till 22nd Sep’23) of ~20% YoY factoring in the HDFC-HDFC Bank merger (~15.3% YoY ex-HDFC) continues to...

Axis Direct

Top Sector Ideas - Banking, Financial Services and Insurance (BFSI)

The NBFCs under our coverage reported healthy AUM growth led by strong demand across segments .Owing to seasonal weakness, disbursements for most...

Axis Direct

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