Axis Bank: A creditable show

THE COMPASS

While there is some concern that smaller companies will find it harder to operate in an economy that is slowing down, the management says the portfolio is a seasoned one and appears confident of maintaining the quality of credit.

The bank's Tier I capital adequacy ratio now stands at a much lower 9.93 per cent, down from 10.2 per cent in March 2008 and 13 per cent post its equity issue about a year back. However, an equity dilution is unlikely before FY11. At the current price of Rs 636, the stock trades at around 2.4 times estimated FY 09 book value.