Visit http://indiaer.blogspot.com/ for complete detailsAxis Bank (AXSB IN, CMP: `1,542; TP: `1,529; Outperform)
• We expect cost of deposits to be relatively higher in 2QFY11 primarily on account of repricing of bulk deposits which constitute 40% of total deposits. We are factoring a marginal decline in margins.
• Slippages for the current quarter would be in line with last 3 quarters. Slippages from restructured advances are likely to be higher in 2HFY11 primarily on account higher slippages from restructured accounts
• We are factoring a 36% growth in advances in 2QFY11 primarily on account of base effect which we expect to moderate to 25% by year end.
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