Get App
Download App Scanner
Scan to Download
Advertisement
This Article is From Jan 24, 2024

Axis Bank Shares Fall Over 6% After Q3 Margin Concern

Axis Bank Shares Fall Over 6% After Q3 Margin Concern
An Axis Bank branch in Mysore. (Source: Axis Bank's Facebook page)
STOCKS IN THIS STORY
Axis Bank Ltd.
--

Shares of Axis Bank Ltd. fell over 6% on Tuesday after its profit rose 3.7% in the third quarter amid a compression in net interest margin.

The private lender's net profit rose 3.7% year-on-year to Rs Rs 6,071 crore in the quarter ended December, according to an exchange filing. That compares with Rs 6,117 crore estimated by analysts in a Bloomberg's survey.

The bank reported a net interest margin of 4.01% in Q3, a 10 basis point compression from the previous quarter.

The capital adequacy ratio took a hit of 168 basis points on a sequential basis, falling to 14.88% as on Dec. 31. The dip is due to the increase in risk weights for unsecured consumer loans by the Reserve Bank of India in November. Higher risk weights typically lead to a fall in capital adequacy as the bank has to set aside additional capital against such loans.

Axis Bank Q3 Result Key Highlights

  • Net interest income up 9.45 at Rs 12,532 crore. (YoY)

  • Net profit up 3.7% at Rs 6,071.1 crore. (Bloomberg estimate: Rs 6,117 crore). (YoY)

  • Gross NPA at 1.58% vs 1.73% (QoQ).

  • Net NPA at 0.36% vs 0.36% (QoQ).

The scrip fell as much as 6.27% to Rs 1,020.90 apiece, the lowest level since Nov 28. It trading 4.6% lower at Rs 1,039.10 apiece, as of 09:38 a.m. This compares to a 0.09% advance in the NSE Nifty 50 Index.

It has risen 14.75% in 12 months. Total traded volume so far in the day stood at 5.4 times its 30-day average. The relative strength index was at 34.98.

Out of 48 analysts tracking the company, 46 maintain a 'buy' rating, eight recommend a 'hold', according to Bloomberg data. The average 12-month consensus price target implies an upside of 21.9%.

Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.

Newsletters

Update Email
to get newsletters straight to your inbox
⚠️ Add your Email ID to receive Newsletters
Note: You will be signed up automatically after adding email

News for You

Set as Trusted Source
on Google Search