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Banking/Financials
Axis Bank
Axis Bank expects a tight liquidity regime to prevail for the next 4-6 months on account
of increased tax outflow and weak government spending.
The bank expects margins for the banking system to remain under pressure and the
CASA ratio to slightly deteriorate as it feels that the Indian banking system is not
equipped to handle low value–high volume business.
Axis Bank expects its NIM to remain in the range of 3.25–3.5% and CASA ratio at ~40%.
It expects CASA balances to grow at 20-25%, in line with the balance sheet growth.
The bank is planning to ramp up its branch expansion aggressively. It expects to reach a
total of 1,300-1,350 branches by FY11 and thereafter add another 300 branches per year
for the next 2-3 years.
Axis Bank does not expect any shift in the loan mix for the next 1-2 years. Corporate
capex demand is weak currently; if the capex demand were to improve, the share of
infrastructure loans could come down. Within infrastructure, delays in sanctions and
disbursements are clearly visible.
The bank does not expect any major impact of Basel III on its capital requirements.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Banking/Financials
Axis Bank
Axis Bank expects a tight liquidity regime to prevail for the next 4-6 months on account
of increased tax outflow and weak government spending.
The bank expects margins for the banking system to remain under pressure and the
CASA ratio to slightly deteriorate as it feels that the Indian banking system is not
equipped to handle low value–high volume business.
Axis Bank expects its NIM to remain in the range of 3.25–3.5% and CASA ratio at ~40%.
It expects CASA balances to grow at 20-25%, in line with the balance sheet growth.
The bank is planning to ramp up its branch expansion aggressively. It expects to reach a
total of 1,300-1,350 branches by FY11 and thereafter add another 300 branches per year
for the next 2-3 years.
Axis Bank does not expect any shift in the loan mix for the next 1-2 years. Corporate
capex demand is weak currently; if the capex demand were to improve, the share of
infrastructure loans could come down. Within infrastructure, delays in sanctions and
disbursements are clearly visible.
The bank does not expect any major impact of Basel III on its capital requirements.
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