Axis Bank shares plunged 4 percent on Monday, emerging as the top loser on both the Nifty 50 and Bank Nifty following the private sector lender's mixed second-quarter earnings. While brokerages remained broadly positive on the stock's outlook, concerns over pressure on margins, elevated operating expenses and a rising loan-to-deposit ratio weighed on sentiment.
Axis Bank stock fell to Rs 1,238 in morning trade, extending its year-to-date decline to 3 percent, compared with an 11.5 percent fall in the Nifty 50. The bank's market capitalisation stood at approximately Rs 3.86 lakh crore.
The decline came after Axis Bank reported a 37.6 percent year-on-year increase in net profit to Rs 7,003.3 crore for Q2 FY27, below the CNBC TV18 poll estimate of Rs 7,132 crore. Net interest income (NII), however, rose 11.8 percent to Rs 15,371.4 crore, exceeding the estimate of Rs 14,970 crore.
The bank's net interest margin (NIM) stood at 3.36 percent, although the figure was 3.47 percent excluding the impact of FCNR-B deposits. Asset quality improved, with the gross NPA ratio declining to 1.16 percent from 1.46 percent a year earlier, while the net NPA ratio fell to 0.35 percent from 0.44 percent.
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