Last Updated on Jul 27, 2022 by

On Monday, Axis Bank reported a 91% jump in its net profit at Rs. 4,125.26 cr. in the April-June quarter of 2022. The bank’s key financial parameters showed an improvement with net interest income at a growth of 21% annually and 6% sequentially. The net interest margins increased by 14 bps annually and 11 bps sequentially to 3.60% during the quarter. However, the operating profit was down 5% on-year basis. 

Despite the positive net profit, on Tuesday, shares of Axis Bank dropped by 3.5% to Rs. 702 apiece and closed at Rs. 706.35 on the BSE. According to Edelweiss experts’ statement, “While growth in retail and mid-corporate loans was strong, large corporate loans fell 10% quarterly as state banks sacrificed risk-based pricing to gain share. Axis is the only large bank where the slippage ratio fell quarter-on-quarter. Rs. 7 bn. trading loss is in-line. If Axis sustains the core performance of Q1 FY 2023, the stock’s discount to peers will narrow.” 

Meanwhile, when the market didn’t open well on Tuesday for Axis Bank, there was another news where the Competition Commission of India (CCI) approved Axis Bank’s proposed buyout of Citi’s consumer business in India. As per the deal worth Rs. 12,325 cr., Axis Bank will take over Citi’s consumer business, including personal loans, credit cards, wealth management businesses and retail banking operations.


How will Axis Bank benefit from Citi Bank’s acquisition?

  • Axis will access Citi’s unique customers, approximately 3 mn. 
  • With ~2.5 mn Citibank cards, Axis Bank’s cards balance sheet could grow by 57%. This can make Axis one of the top three card companies in India. 

Shares of Axis Bank started going up on Wednesday. The current stock price is Rs. 718.60 at NSE and Rs. 718.55 at BSE. Follow Tickertape Blog to keep up with the latest news. 

Anjali Chourasiya
guest
0 Comments
Inline Feedbacks
View all comments
55,00,000+ users trust Tickertape for Investment Analysis!
55,00,000+ users trust Tickertape for Investment Analysis!
55,00,000+ users trust Tickertape for Investment Analysis!
55,00,000+ users trust Tickertape for Investment Analysis!

The blog posts/articles on our platform are purely the author’s personal opinion and do not necessarily represent the views of Anchorage Technologies Private Limited (ATPL) or any of its associates. The content in these posts/articles is for informational and educational purposes only and should not be construed as professional financial advice. Should you need such advice, please consult a professional financial or tax advisor. The content on our platform may include opinions, analysis, or commentary, which are subject to change, without notice, based on market conditions or other factors. Further, the use of any third-party websites or services linked on the website is at the user's discretion and risk. ATPL is not responsible for the content, accuracy, or security of external sites. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. The examples and/or securities quoted (if any) are for illustration only and are not recommendatory. Any reliance you place on such information is strictly at your own risk. In no event will ATPL be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.

By accessing this platform and its blog section, you acknowledge and agree to the Terms and Conditions of this website, Privacy Policy and Disclaimer.