Last Updated on Jul 27, 2022 by Nikitha
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.
- Atal Pension Yojana – Registration, Eligibility, Monthly Contribution - Aug 19, 2022
- Mutual Fund Investment Guide in 2022 - Aug 13, 2022
- Market Capitalisation: The Difference Between Small-Cap, Mid-Cap and Large-Cap - Aug 8, 2022