Axis Bank share was among the top Sensex and Nifty gainers ahead of the lender's Q4 earnings set to be announced today. Share price of Axis Bank gained 4.96% to Rs 448.5 compared to the previous close of Rs 427.30 on BSE. The stock opened 2.74% higher at Rs 439. Total 7.32 lakh shares changed hands amounting to turnover of Rs 32.38 crore on BSE.
The large cap stock hit its 52 week high of Rs 826.55 on June 6, 2019 and 52 week low of Rs 285 on March 25, 2020.
Axis Bank to acquire 29% stake in Max Life Insurance
Market capitalisation of the firm stood at Rs 1.24 lakh crore. Axis Bank share has gained 9.38% in last two days. The large cap stock has lost 41.66% during the last one year and fallen 41.18% since the beginning of this year. However, it has gained 23.3% in last one month.
The stock is trading higher than 5 day and 20 day moving averages but lower than 50 day, 100 day and 200 day moving averages
37 of 45 brokerages rate the stock "buy" or 'outperform', seven "hold" and one "underperform", according to analysts' recommendations tracked by Reuters.
On Nifty, the stock rose up to 4.9% to Rs 448.80 against previous close of Rs 427.30.
In third quarter of previous fiscal, Axis Bank reported a 4.52 per cent year-on-year (YoY) growth in its standalone net profit against net profit of Rs 1,681 crore in the corresponding quarter of previous fiscal.
During the September quarter, the bank had posted a loss of Rs 112.1 crore due to one-time impact of deferred tax asset (DTA). Net interest income (NII) climbed 15 per cent to Rs 6,453 crore in Q3 compared to Rs 5,604 crore in December quarter of last fiscal.
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Other income (non-interest income), which comprises of fee, trading profit and miscellaneous income, fell by 5 per cent to Rs 3,787 crore compared to Rs 4,001 crore in the same quarter last year.
Operating profit of Axis bank rose 4 per cent to Rs 5,743 crore from Rs 5,525 crore in Q3FY19. While operative revenue grew 7 per cent YoY to Rs 10,240 crore, operating expenses jumped 10 per cent to Rs 4,497 crore on the yearly basis.
In a related development, the lender's board has cleared acquiring an additional 29 per cent stake in Max Life Insurance. The total stake of Axis Bank in Max Life Insurance will increase to 30 per cent post the deal.
Max Life will become a 70:30 joint-venture between Max Financial Services and Axis Bank after completion of the series of transactions, Axis Bank said. Max Financial Services currently owns 72.5 per cent in Max Life and Mitsui Sumitomo Insurance (MSI) holds 25.5 per cent stake. Axis Bank already had a minor stake in the life insurer.
By Aseem Thapliyal