The improving ROE story
Axis Bank offers the entire spectrum of financial services to customer segments covering Large and Mid-Corporates, MSME, Agriculture and Retail Businesses. The bank’s integrated business lines offer a comprehensive suite of customised financial solutions to individuals, businesses, and institutions across India. This unified approach leverages digital innovation, domain expertise, and a strong physical presence to holistically serve customers through every stage of its financial journey.
Axis Bank Limited provides various financial products and services in India and internationally. The company operates through four segments: Treasury, Retail Banking, Corporate/Wholesale Banking, and Other Banking Business. It provides fixed, recurring, and safe deposits; and saving, salary, current, safe custody, pension disbursement, and demat and trading accounts. The company also offers home, personal, car, two-wheeler, business, commercial vehicle construction equipment, education, gold loans, as well as loans against securities, fixed deposits, properties, and credit cards. In addition, it provides credit and debit cards; mutual funds; governmental investment products, such as public provident fund, floating rate saving bonds, and national pension system; digital gold and sovereign gold bonds; alternate investment products; insurance services, such as life, general, and health insurance; and various forex products and services. The company was formerly known as UTI Bank Limited and changed its name to Axis Bank Limited in July 2007. Axis Bank Limited was incorporated in 1993 and is headquartered in Mumbai, India.
Key people: Mr. Amitabh Chaudhry (MD, CEO & Executive Director) · Mr. Neeraj Gambhir (Executive Director) · Mr. Subrat Mohanty (Executive Director of Banking Operations & Transformation and Director) · Mr. Munish Sharda (Executive Director) · Mr. Julius Samson (Head, Corporate Communication & Investor Relation) · Ms. Damini Marwah (Group Chief Legal Counsel and Chief Ethics Officer)
Axis Bank major competitors are Kotak Mahindra Bank, Federal Bank, AU Small Fin. Bank, Indusind Bank, IDFC First Bank, Yes Bank, RBL Bank. Market Cap of Axis Bank is ₹3,88,751 Crs. While the median market cap of its peers are ₹74,876 Crs.
Axis Bank seems to be financially stable compared to its competitors.The probability of it going bankrupt or facing a financial crunch seem to be lower than its immediate competitors.
Yahoo profile 23 Sept 2026 · Tijori 23 Sept 2026
Latest reported mix as compiled by Tijori from company disclosures; percentages of revenue.
As the company reports them. They can differ from the ratio table on the Financials tab, which uses Tijori's own definitions (for example NIM on average total assets rather than on interest-earning assets); the Cross-check panel there lines both up.
India's third-largest private bank (₹12.6 lakh crore of loans, ~5,900 branches) with a corporate-bank heritage that has been rebuilt into a balanced franchise since 2019: retail and SME are now ~70% of loans, the Citi consumer business (2023) added a premium card and wealth franchise, and the bank has the strongest technology delivery among the big three after ICICI. Subsidiaries (Axis Finance, Axis AMC, Axis Capital, Axis Securities, and a 20%-plus stake in Axis Max Life) are worth ~₹110 a share.
| ICICI Bank | We own both; ICICI is the higher-quality, higher-priced finished article. Axis has more upside if the ROE recovery lands, and more risk if NIM disappoints again. |
| Kotak Mahindra | Kotak's 12% ROE at 2.0x core book compares with Axis's 14% at 1.7x — Axis is cheaper for a higher and rising return. |
| IndusInd Bank | IndusInd is a governance and accounting rebuild after the derivatives loss; Axis has already done its rebuild. |
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Banking — 21.1%: the largest exposure, chosen bank by bank
Banks are the cheapest way to own an economy growing 8–9% in nominal terms, and today they are cheap for a reason that has nothing to do with their economics. Every one of the four cycles that drive bank earnings is turning in their favour: deposits are growing 15.4% (the fastest in a decade) so the funding squeeze that capped growth in FY25–26 is easing; system credit is growing 18.3% and corporate borrowing is migrating from a shrinking bond market (issuance −18%) back onto bank balance sheets; margins troughed in the June 2026 quarter after 125 bp of repo cuts and are now rising as deposits reprice; and asset quality is the best in twenty years (large private-bank net NPAs 0.3–0.5%, SBI 0.38%). Yet the Bank Nifty trades below its own long-run average. The reason is mechanical: foreign investors have sold ₹1.8 lakh crore of Indian equity in FY26 and six of their ten largest holdings are banks. They can only sell what they own. Our own work — a capital-adjusted residual-income model of the four large private banks plus SBI, built from FY17 — says the four large private banks earn 14.5–17.5% on normalised capital against a 12.25–13% cost of equity and will compound book at 12–16% a year. Over ten-year horizons EPS growth and share-price growth converge; the arithmetic is on our side even if the timing of the narrative turn is not. The important sales point is that our alpha in financials has come from selection, not the index: SBI in 2017 when retail delinquencies were better than perceived, ICICI as a top pick from 2018, Axis through its credit-cost trough (up 40–50% for us). Roughly 40% of the bank index is HDFC Bank and Kotak and we deliberately did not hug it at 4–5x book.
Kotak Mahindra Bank is the obvious omission. Our model rates it REDUCE: a 12% ROE bank at 2.0x core book, priced for a 17% ROE it does not earn, with CASA sliding toward 40% and a CEO succession still ahead. The argument the house has used for years — a 16–17% ROE bank cannot compound above that without dilution, so 4–5x book is unsustainable — applies with more force to a 12% one. IndusInd is a governance rebuild we do not need to underwrite; Federal Bank and AU Small Finance are good franchises but neither has IDFC First's deposit engine or its operating-leverage runway at a comparable price. Among public-sector banks, Bank of Baroda and Canara are cheaper on paper but have weaker CASA, thinner capital and none of SBI's subsidiary optionality; SBI's premium (1.25x vs 0.9–1.0x) is the price of a franchise that survived the AQR and emerged with the best retail book in the system.
| Bank Advances - Market Share | 5.77 % | as of Mar 26 |
| Bank Deposits - Market Share | 5.09 % | as of Mar 26 |
| CIF Market Share | 14 % | as of Jun 25 |
| Credit Card Transactions - Market Share | 11.44 % | as of Jul 26 |
| Debit Card Transactions - Market Share | 4.77 % | as of Jul 26 |
| Equity AUM - Market Share | 5.78 % | as of Jul 26 |
| Foreign LC Market Share | 10.60 % | as of Jun 25 |
| Forex Cards - Market Share | 30 % | as of Jun 22 |