Axis Bank’s shares are in focus today following the announcement of its Q3 FY25 results, which led to a sharp 6% decline in share price. Here’s a live update of the developments surrounding Axis Bank’s performance and the broader market reaction.
Q3 FY25 results January 17, 2025: Live Updates
9:15 AM – Market Opens
- Axis Bank shares opened at ₹915, down from the previous close of ₹974.
- The stock witnessed high selling pressure in early trading, reflecting weak investor sentiment.
10:00 AM – Brokerage Downgrades
- Citi and other major brokerage firms lowered price targets for Axis Bank, citing:
- Slower CASA growth
- Flat net interest margin (NIM)
- Increased slippages
| Brokerage | Previous Target | Revised Target | Rating |
|---|---|---|---|
| Citi | ₹1,050 | ₹960 | Neutral |
| Morgan Stanley | ₹1,000 | ₹940 | Underweight |
11:30 AM – Key Financial Metrics Highlighted
| Metric | Q3 FY25 | Q3 FY24 | Change (YoY) |
|---|---|---|---|
| Net Profit | ₹6,036 crore | ₹5,853 crore | +4% |
| CASA Growth | +6% YoY | +11% YoY | Declined |
| Gross NPA Ratio | 2.02% | 2.08% | Improvement |
| Net Interest Margin (NIM) | 4.1% | 4.2% | Flat |
1:00 PM – Market Commentary
- Analysts highlight Axis Bank’s strategic focus on quality deposits as a double-edged sword:
- Positive for long-term stability
- Negative for immediate growth visibility
- Investor concerns grow over higher slippages and muted CASA traction.
- Axis Bank shares trade at ₹910, a 6.5% intraday drop.
- Broader markets remain stable, with NIFTY Bank index showing mild gains of 0.2%.
3:30 PM – Market Close
- Axis Bank closes at ₹908, marking a 6.8% decline for the day.
- The trading volume is significantly higher than average, indicating heightened investor activity.
Also Read :- Axis Bank Shares Decline 3.5% Following Q3 FY25 Results: An Analysis
FAQs
The drop is due to weak Q3 FY25 results and multiple price target cuts by brokerage firms.
What is CASA, and why is it important?
CASA stands for Current Account Savings Account, a key metric indicating low-cost deposits for a bank.
What was Axis Bank’s Q3 FY25 net profit?
Axis Bank reported a net profit of ₹6,036 crore, a 4% increase year-over-year.
How did brokerage firms react to the results?
Several firms, including Citi, downgraded the stock, citing slower CASA growth and flat margins.
While long-term prospects remain positive due to quality-focused strategies, short-term growth visibility appears limited.
Conclusion
Axis Bank’s Q3 FY25 results and subsequent downgrades have significantly impacted its share price, raising concerns over short-term growth. While the bank’s focus on quality deposits may yield long-term benefits, investors are advised to remain cautious and monitor upcoming developments.
