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Today's prices ask more of IndusInd Bank than of Axis Bank.
At current prices, buyers of Axis Bank are assuming about 14.5% return on equity against 14.3% in its own record; for IndusInd Bank it is 12.5% against 3.4%. That shows which share needs more to go right — not which is cheaper. How far each trades from its estimated fair value is in the full valuations.
- Valuation method: both on excess return.
- Size: Axis Bank is worth about 5.8 times IndusInd Bank on the stock market.
- Record: Axis Bank has grown revenue faster: Axis Bank compounded at about 13% a year (FY2019–FY2026) and IndusInd Bank at about 7% (FY2020–FY2026).
- What to watch: closing the return gap at Axis Bank; normalised profitability at IndusInd Bank.
| Axis Bank | IndusInd Bank | |
|---|---|---|
| Price | ₹1,331 | ₹914 |
| Market cap | ₹4.14L Cr | ₹0.71L Cr |
| P/E | 13.8 | 23.7 |
| P/B | 1.94 | 1.08 |
| Fair value 🔒 sign in | ₹0,000 | ₹0,000 |
| Upside 🔒 sign in | +00% | +00% |
| Valued on | Excess return | Excess return |
01Two businesses
From UTI Bank to a top-three private lender
Axis Bank started life in 1993 as UTI Bank, set up by the Unit Trust of India and other state-owned institutions, and took its current name in 2007. It lends to large corporates, small businesses and households, and runs one of the largest credit-card businesses in India.
A high-return private bank, knocked off course
IndusInd Bank, part of the Hinduja group, is a mid-sized private bank known for vehicle finance, microfinance through Bharat Financial Inclusion, credit cards and corporate lending. For years it earned high margins from these higher-yielding loans.
02The records side by side
Axis Bank has grown revenue faster: Axis Bank compounded at about 13% a year (FY2019–FY2026) and IndusInd Bank at about 7% (FY2020–FY2026). By revenue, Axis Bank is about 3.0 times the size of IndusInd Bank. Axis Bank kept 16.3% of revenue as net profit in FY2026; IndusInd Bank kept 1.7% of revenue as net profit in FY2026 — a sign of very different business models.
Full ten-year tables and charts are on each company's page: Axis Bank · IndusInd Bank.
03What each price assumes
Work backwards from each share price and you can see what buyers are taking for granted — the rate each company must sustain to justify what it costs, against what its own record supports.
04What decides each one's value
- Closing the return gapAxis has earned less on its equity than the two largest private banks. How much of that gap closes is the heart of its valuation.
- Deposit franchiseGrowing low-cost deposits is the cheapest way to lift margins.
- Normalised profitabilityHow much the bank earns once one-time losses are behind it is the core question.
- Deposit stabilityKeeping depositors confident after the shock protects funding.
05What could go wrong
- Corporate creditAxis has had a more volatile corporate-loan record than its closest peers.
- Unsecured lendingCards and personal loans are the first place a consumer slowdown shows up.
- Further surprisesAdditional write-downs would delay recovery.
- Microfinance stressRural borrower stress can raise defaults quickly.
06Which is better value?
Sign in free to see which trades further below its worth
- ✓Both fair values per share — each on the method that fits the business
- ✓Every step of both workings — growth, margins and cost of capital, with sources
- ✓Bull, base and bear cases — for each company
- ✓Downloadable reports — the full write-up for each, yours to keep
08Questions people ask
Is Axis Bank or IndusInd Bank better value?
That turns on how far each share trades from its estimated fair value. Both figures, with every step of the working, are in the full valuations, free to view once you sign in. On the public numbers, Axis Bank trades at 13.8 times earnings and 1.94 times book value, and IndusInd Bank at 23.7 times earnings and 1.08 times book value — but multiples alone mislead when two businesses work differently, which is why each is valued on the method that fits it.
What is the difference between Axis Bank and IndusInd Bank?
Axis Bank started life in 1993 as UTI Bank, set up by the Unit Trust of India and other state-owned institutions, and took its current name in 2007. IndusInd Bank, part of the Hinduja group, is a mid-sized private bank known for vehicle finance, microfinance through Bharat Financial Inclusion, credit cards and corporate lending.
Are Axis Bank and IndusInd Bank valued the same way?
Yes — both on excess return, so their workings compare like for like.
What does today's price assume for Axis Bank and IndusInd Bank?
Worked backwards from the share price, Axis Bank needs about 14.5% return on equity and IndusInd Bank about 12.5% return on equity, against 14.3% and 3.4% in their own records.