Axis Bank shares fell over 5% to Rs 1,034.75 on Wednesday despite higher-than-expected December quarter earnings. Positive commentary from brokerages failed to alleviate selling pressure in top banking counters. Morgan Stanley maintained an Overweight stance, while Nuvama maintained a Buy view. However, Motilal downgraded the rating to Neutral due to growth challenges. Axis Bank reported a 4% YoY jump in standalone net profit to Rs 6,071 crore. Net interest income in Q3 rose 9% to Rs 12,532 crore.
Banking stocks are in focus after Nifty Bank hit a record high in trade today (December 15) on the back of overall positive market sentiment. Let s analyse between Axis Bank and Punjab National Bank (PNB), which one has better long-term investment opportunities.
In November 2017, Boston-headquartered Bain Capital led a consortium that invested $1.8 billion in Axis Bank to help shore up the lenders capital base. The consortium had invested capital at Rs 525 per share. Bain Capital invested around Rs 6,854 crore.
Axis Bank block deal: Three sellers entities namely BC Asia Investments VII, BC Asia Investments III and Integral Investment South Asia IV will sell $444 million worth Axis Bank shares. The floor price is set at Rs 1,109 apiece.