Axis Bank's stock nudged up 1.5% on Tuesday, reaching ₹1,304 per share after the lender released a solid December‑quarter update.
Q3 Business Highlights
- Loans grew 14.1% YoY to about ₹11.71 lakh crore, with a 3.7% rise from the September quarter.
- Deposits rose 15% YoY to ₹12.61 lakh crore, and were up 4.8% quarter‑on‑quarter.
- CASA (current‑account savings) balances increased 13.9% YoY, while term deposits grew 15.8% YoY.
- Average quarterly deposits hit ₹11.97 lakh crore, up 12.3% YoY and 5.1% from the previous quarter.
Recent Profit Dip Explained
In the second quarter, net profit fell 26% YoY to ₹5,090 crore because the bank set aside a one‑time provision of ₹1,231 crore for two discontinued crop‑loan products, following a RBI advisory.
Despite the profit drop, the bank showed signs of strength:
- Net interest income rose 2% YoY to ₹13,745 crore, beating expectations of a decline.
- Net interest margin improved to 3.73%.
- Asset quality got better, with gross NPAs at 1.46% and net NPAs at 0.44%.
Share Price Momentum
- The stock hit its highest level since July 2024 and sits about 2.6% below its all‑time peak of ₹1,339.
- Since August, Axis Bank shares have rallied nearly 22%, adding about 1.6% this month.
- For 2025, the stock finished with a 19.3% gain, the best annual performance since 2022.
- At 12 pm on the trading day, the shares were up 0.72% at ₹1,295, while the broader market remained weak.
What This Means for Investors
Analysts view the one‑time provisioning as a temporary hit and remain optimistic about the bank’s steady loan and deposit growth, improving asset quality, and expanding balance sheet.
For retail investors, the strong Q3 numbers suggest the bank is on a growth trajectory, which could support further upside in the stock.
Disclaimer
Remember, this is perspective, not a prediction. Do your own research or consult a certified financial expert before making any investment decisions.