Axis Bank shares rise 2% after rating affirmation by Moody's

Axis Bank share price: Shares of private sector lender Axis Bank soared over 2 per cent in trade on Thursday (February 22). The stock gained after credit ratings agency Moody's affirmed Axis Bank's Baa3 long-term deposit ratings at 'Baa3'.

At around 10:45 a.m., shares of Axis Bank traded 1.03 per cent or Rs 11.15, higher at Rs 1,095.3 apiece. The market capitalisation of the company at around the same time stood at Rs 3,37,832.32 crore.

Moody's states that the bank's diversified loan portfolio and above-industry average profitability will support internal capital generation and strong solvency. In addition, Axis' strong retail franchise, access to low-cost deposits, and sufficient holdings of liquid government securities will support its funding and liquidity. 

Moody's expects the bank's asset quality to remain broadly stable as India's economic momentum continues to be robust. Indian corporates' improving profitability and deleveraged balance sheets are supporting stable asset quality. 

"Axis' rating affirmation with a stable outlook reflects India's favourable operating environment, which offers the bank an opportunity to further strengthen its market position," Moody's said in a statement. 

The global rating agency expects Axis Bank to grow loans above the industry's average loan growth of 12–14 per cent in the fiscal year ending March 2025 (fiscal 2025), enabling the bank to gain a larger market share.

How did Axis Bank fare in Q3? 

Private sector lender Axis Bank reported a standalone net profit of Rs 6,071.1 crore for the October–December period. The net profit grew 3.7 per cent on a year-on-year basis. 

The bank's net interest income (NII), or the difference between interest earned and interest paid, came in at Rs 12,532.2 crore for the December quarter, as against Rs 11,459.3 crore logged for the year-ago period, according to a regulatory filing. 

Axis Bank share price: Past performance 

In a year, shares of Axis Bank have risen over 30 per cent against Nifty50's rise of over 24 per cent.

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