Axis Bank Shares Slip 5% Amid Muted Q4FY25 Profit Growth; Brokerages See Upside Potential

Axis Bank shares declined 5 per cent on flat on-year net profit in Q4FY25 at ₹7,117 crore, due to muted gains in core and other income growth.The stock traded 4.48 per cent lower on the NSE at ₹1,153 as at 10.35 am, close to intraday low of ₹1,151.10.

According to analysts, asset quality improved slightly as slippages were under control.

The board recommended a final dividend of ₹1 per equity share.

However, brokerages see upside potential for the stock and have increasing target prices, counting on bank’s strong sequential, period-end loan and deposit growth and improving asset quality for Q4FY25. The net interest income (NII) growth was soft.

Nuvama Institutional Equities has maintained a buy at an increased target price from ₹1,220 to ₹1,400. It said that Axis Bank has a tightly matched duration (on rates) of assets and liabilities. Better system liquidity will aid deposit growth.

The private sector bank on Thursday disclosed its plan to raise ₹20,000 crore by issuance of equity shares or related securities. It also plans to raise ₹35,000 crore through local rupee bonds or foreign currency bonds, additional tier-1 bonds, infrastructure bonds, and other debt. It has also increased the borrowing limit to ₹3 lakh crore.