Axis Bank Shares Jump 4% on Strong Q2 Performance, Asset Quality Improvement
Shares of India’s private lender Axis Bank surged 4% on Thursday following the release of its September-quarter results, driven by improved asset quality and balance sheet growth. By 9:30 a.m. IST, the stock climbed as much as 4.04% to 1,216.9 rupees, making it the top gainer on the Nifty 50, which was up 0.4%. Axis Bank last traded 3% higher, reflecting investor optimism over the quarter’s performance.
Analysts at HSBC highlighted substantial improvements in the bank’s credit costs and resilient net interest margins (NIM), noting a modest 7 basis points decline—better than the 20 basis points drop predicted by Jefferies. Both HSBC and Jefferies raised their price targets for the stock, with HSBC increasing its target to 1,460 rupees from 1,340 rupees, and Jefferies raising its target to 1,430 rupees from 1,370 rupees while maintaining a “buy” rating. At least eight brokerages covering the stock adjusted their price forecasts upward.
Despite posting a sharper-than-expected drop in quarterly profit, Axis Bank reported an 11% year-on-year growth in total deposits alongside a decline in credit costs. Its NIM decreased to 3.73% from 3.8% in the previous quarter and 3.99% a year ago, signaling steady financial resilience amid challenging conditions. Investors and analysts view these trends as a positive sign for the bank’s ongoing performance.
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