Advertisement
Private equity has played a significant role in shaping Indi...
In today’s real estate landscape, fitness is often treated...
In this episode of Prop Personalities, we sit down with Hars...
Luxury real estate is one of the most talked-about segments ...
Welcome to Prop Personalities by Prop News Time - a podcast ...
Axis Bank’s shares declined after the lender reported slightly weaker-than-expected quarterly earnings, impacted by higher provisions linked to global macro uncertainties. The bank also approved a USD 2 billion equity fundraise, which added to investor caution. While profit saw a marginal decline, a tax writeback related to its Citibank deal helped offset some of the provisioning impact. Market sentiment remained cautious, though analysts indicated that the one-time provision should not be over-interpreted, given the bank’s underlying financial stability and broader growth outlook.
Shares of Axis Bank came under pressure in the past week after the lender reported lower-than-expected earnings for the fourth quarter, along with announcing plans to raise USD 2 billion through equity. Advertisement
The stock declined as much as 4.8% during trading and was down 3.7% at INR 1,316 in morning trade, reflecting investor concerns over profitability and dilution from the proposed capital raise.
Axis Bank reported a 0.7% year-on-year decline in quarterly profit to INR 70.71 billion. This fell short of analyst estimates of INR 73.16 billion, as per data compiled by LSEG. The dip in earnings was largely due to higher provisioning during the quarter.
The lender set aside a one-time provision of INR 20 billion to account for macroeconomic risks, including possible stress arising from ongoing tensions in West Asia. This cautious approach impacted the bottom line, though it was partly balanced by a tax writeback of INR 21 billion linked to its earlier acquisition of Citibank’s India consumer business.
CLSA noted that the provision was taken due to global macro uncertainty and indicated that while it may have unsettled the market, it should not be seen as a significant negative signal for the bank’s overall performance.
Axis Bank has been integrating Citibank’s retail portfolio over the past few quarters, a move that has strengthened its consumer banking presence but also introduced short-term financial adjustments. The proposed equity fundraise is expected to support future growth and maintain capital adequacy as the bank expands its lending operations.
Source Reuters
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
