The private lender posted a 3% rise in net profit for the three months ended December 31, while analysts had expected profits to fall | Photo credit: REUTERS/ANUSHREE FADNAVIS
The stock rose to an 18-month high of ₹1,332.
The private lender posted a 3% rise in net profit for the three months ended December 31, while analysts had expected profits to fall, according to data compiled by LSEG, while retail loan payouts would rise in the quarter.
Brokerage Citi upgraded the stock to “buy” from neutral after strong third-quarter earnings, citing better visibility into credit growth outperforming system averages and an improved asset quality trajectory.
Axis Bank was the biggest gainer among the Nifty 50 index and the financial sector on the day. The 50-share index fell 0.2% and financials remained steady as gains at Axis Bank were offset by Kotak Mahindra Bank’s 3.9% decline.
The rise in Axis Bank shares was supported by strong volumes. More than 11.7 million shares have changed hands in the few hours since the market opened, about 2.4x the 30-day average daily volume.
While the lender’s cost of credit remained broadly flat from the previous quarter, Macquarie said these should be seen as positive given the increase in both normal and technical slippages due to agricultural seasonality.
“We believe credit costs can decline over the coming quarters and provide a further cushion to asset returns,” Macquarie said.
Published on January 27, 2026
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