Angel Broking maintains 'buy' on Axis Bank

Axis Bank
cmp: Rs 493.85
target price: Rs 751

Angel Broking maintained its ���buy��� rating on Axis Bank, with a price target of Rs 751 post its March quarter earnings. ���We remain positive on the bank and believe it deserves premium valuations on account of its attractive CASA (current account savings account)franchise, multiple sources of sustainable fee income, strong growth outlook and A-list management,��� the outfit said in a report.

���We expect interest rates to further decline in FY2010E and believe that the Treasury will be an important profit centre during the year for the sector,��� Angel said. ���Axis Bank has positioned itself to gain substantially from a fall in interest rates, especially on corporate bonds, by increasing its exposure in the AFS Segment to 43%, with a high modified duration of 3.7 years, comprising around Rs 18,000 crore of corporate bonds and Rs 3,600 crore of G-secs,��� it added.