Axis Bank shares rise: Shares of Axis Bank surged over 3 percent in the early trade Monday as in morning trade as investors bet on the positive Q2 results of the private lender.
Axis Bank shares rise: Shares of Axis Bank surged over 3 percent in the early trade Monday as in morning trade as investors bet on the positive Q2 results of the private lender. The shares of the bank rose as much as 3.4% to 631.3 rupees, their highest since September 21. The country’s third-largest private lender in terms of assets recorded a a better-than-expected 82.6% jump in profits in quarter ended September, supported by higher interest income and improved asset quality.
What brokerages say on Axis Bank
Nomura says Q2 “clearly indicates a turning point in profitability for the bank, as net interest margins (NIM) are on an improving trend that should drive faster pre-provision operating profit growth.” The global rating agency raises target price to Rs 750 from Rs 630 earlier, maintains rating at ‘buy’.
Deutsche Bank (DB) said: “Axis Bank remains well positioned to build up on its strong positioning in a tight liquidity environment with a likely pick up in growth along with NIM improvement.” It also says that Axis Bank is one of its top picks, expects a strong earnings revival; retains ‘buy’ with a target price of Rs 750.
The shares of Axis Bank were trading at Rs 622.75, up 2.10 percent on BSE at the time of reporting.
Meanwhile, Axis Bank on Friday posted a 83 percent jump in the net profit at Rs 789.61 crore for the July-September quarter supported by healthy growth in core income and a fall in provisions for bad loans. In the corresponding period last year, the bank had reported Rs 432.38 crore in net profit, according to the exchange filing by the Axis Bank.