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Why Analysts Expect Axis Bank Shares to Surge Up to 34% After Q2 Update
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CNBC TV18•06-10-2026, 09:56
Why Analysts Expect Axis Bank Shares to Surge Up to 34% After Q2 Update
- •Axis Bank shares rose nearly 2% after reporting strong gross advances and deposit growth in the second quarter.
- •Gross advances increased by 8.8% sequentially and 22.7% year-on-year to reach ₹13.84 lakh crore.
- •Total deposits grew 5.8% from the previous quarter and 20.7% year-on-year to stand at ₹14.52 lakh crore.
- •Goldman Sachs maintains a buy rating with a target price of ₹1,477, citing inexpensive valuations and strong core PPoP growth.
- •Citi also maintains a buy rating with a higher target price of ₹1,620, highlighting robust FCNR deposit mobilization.
Key Questions Answered
Axis Bank reported a sequential gross advances increase of 8.8% and a year-on-year rise of 22.7% to reach ₹13.84 lakh crore. Total deposits grew by 5.8% from the previous quarter and 20.7% from the previous year, totaling ₹14.52 lakh crore.
Goldman Sachs maintains a "buy" rating on Axis Bank with a target price of ₹1,477 per share, reflecting a 20.7% upside. Similarly, Citi holds a "buy" rating with a target price of ₹1,620 per share, indicating a 34.4% upside.
Strong headline deposit growth was primarily driven by FCNR deposit flows. Citi noted that the lender mobilized $10.62 billion in FCNR(B) deposits, capturing an 8% share of system-wide FCNR mobilization.
