estimates, mainly driven by strong NII and non-interest income

● Fees were particularly strong – capital markets fees rose 21%

QoQ, likely driven by a rapidly growing international syndication

business, but unsustainable given current credit markets globally

● The 16bp NIM expansion was likely partly driven by the favourable

change in loan mix – agri loans declined 170bp and unsecured

loans/credit cards increased 180bp QoQ

● We consider rapid loan growth (13% QoQ) unsustainable, and a

potential risk to credit quality amidst a slowing economy

● Net NPLs remained low, but loan loss provisions have risen

sharply to 1.1% of average loans, and delinquency also rose 20bp

● Tier I ratio declined 70bp QoQ – Axis’ Tier I has now declined

from 13% post-capital raising to 9.2%

● Overall, results appear strong, but we are worried about too much

growth, fast capital usage, and sharply higher loan loss provisions

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