Mumbai: Shares of Axis Bank plunged 6.5% to Rs 787.35 as the private lender’s loan growth in the September quarter lagged peers.
“Axis Bank’s numbers were disappointing on several fronts. Be it the loan growth, margins, slippages, the cost-income ratio and finally RoA – all were inferior to larger peers,” said Macquarie which chose to retain its neutral rating.
ICICI Securities, CLSA, Investec, and HSBC have maintained buy ratings while Morgan Stanley and Credit Suisse have maintained overweight and outperform ratings, respectively.
CLSA said the performance was mixed but the brokerage maintained its buy rating as it expects the bank to catch up partially with peers on loan and pre-provision operating growth.
Some of the brokerages have revised target prices higher after rolling forward valuations while some have lifted the target prices due to lower stressed asset formation.Internet Explorer Channel Network