Axis Bank – Q1FY10 Result Update Marwadi Shares & Finance Ltd Laxmi Ahuja

Investment Argument  Expect loan growth of 30% in FY10E - Have registered 28% credit growth in Q1FY10  Expect margins to be above 3% levels with re-pricing and CASA improvement to further improve NIM  80% of the Corporate book rated at A & above  Sufficiently capitalized with CAR at 15.28%  Strong fee income avenues such as CMS, Syndication, Wealth advisory 52 week H/L – 901/278 Avg Volumes – Beta – 1.01 CMP – 756 P/ABV – 2.4x FY10ABV (309.5) Support – 685 Resistance – 813 Recommend Accumulate with TP of Rs 851 Market Data

Q1FY10Q1FY09Q4FY09y-o-y %q-o-q % NII %1% Non-Int Income , %13% Optg Expenses , %12% Prov &Cont , %24% Net Profit , %-3% Deposits %-6% Advances %-4% Gross NPA1.01%0.92%0.96% Net NPA0.41%0.47%0.35% NIM3.34%3.35%3.37% CAR15.28%13.3%13.69% CASA40.10%39.8%43.10%