Axis Bank hits new 52-week high of Rs 819 apiece on BSE

On Wednesday, Axis Bank enjoyed a 52-week high of Rs 819 per share after ending with a brilliant 4.2 per cent on the BSE during the intra-day trade.

On Wednesday, Axis Bank enjoyed a 52-week high of Rs 819 per share after ending with a brilliant 4.2 per cent on the BSE during the intra-day trade. At 10:50 AM, the stock reported a trading rate of Rs 810 per share that is effectually 3 per cent higher than the previous 0.26 per cent profit in the S&P BSE Sensex.
Axis Bank averred during a regulatory filing that, “We wish to inform you that the Bank has initiated the process of issuing of the debt instruments, in the form of the Additional Tier 1 Notes in foreign currency, subject to market conditions. This will be a sustainable bond under the Sustainable Financing Framework of the Bank and is part of the existing Global Medium Term Notes programme of the Bank. The Offering Circular for the GMTN programme has been updated on Singapore Exchange Limited (SGX) and the International Securities Market (ISM).”

After the display of results, Analysts working at Anand Rathi said that “Given the healthy asset mix, liability strength, adequate capital and superior customer profile, we believe the bank is poised to face near term challenges and benefit in the phase of normalisation. We continue to remain positive on the company over medium to longer-term perspective and maintain our BUY rating on the stock with a revised target price of Rs 860 per share.”

On August 30, the global capital solutions expert Moody’s had delegated B1(hyb) grade to the presented Additional Tier 1 bond by Axis Bank. Moody’s asserted in an official note that: Axis Bank’s BCA could be upgraded if there is an improvement in asset quality, as reflected in the bank being able to maintain credit costs below its long-run average.” It further added, Axis’ BCA could be downgraded if there is a significant weakening in its asset quality, with negative implications on capital and profitability, or if funding weakens as reflected by a deterioration in retail deposits.

The brokerage agency CLSA had gone beyond the lines about choosing financial chambers like Axis Bank on compelling risk factors to reinforce on behalf of the large-cap banks. Commenting on the same, he averred, India’s financials have consolidated for the last two to three months aft1er a post-Covid second wave pullback in April and May. The Axis Bank’s price estimation of Rs 1,050 was consistently pegged by the global agency in order to neutralize the quality of an asset to balance the stocks in the upcoming fiscal year of FY22.

Axis Bank’s net profit by the April-June quarter has risen by 94 per cent to Rs 2,160 crore, displaying a considerable hike in non-interest income while a decrease in provisions. Previously, the bank noted Rs 1,112 crore net profit and a gain of Rs 2,677 crore during the March 2021 quarter.
Source Business Standard
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