Shares of Axis Bank climbed 3.76 percent to Rs 632.90, their highest since September 21.

Share Market Live

NSE

The stock opened with a gain of 2.80 percent at Rs 628.90, after the country’s third-biggest private sector lender by assets on Friday posted a better-than-expected 83 percent jump in July-September quarter net profit at Rs 789.6 crore, boosted by higher interest income and as asset quality improved.

The bank had a net profit of Rs 432.38 crore in the July-September quarter of last fiscal 2017-18.

Net interest income (NII) of the bank increased 15.3 percent to Rs 5,232.11 crore during the quarter under review against Rs 4,539.62 in the same quarter last year.

Provisions fell 6.8 percent to Rs 2,927.38 crore. Gross non-performing loans as a percentage of total loans stood at 5.96 percent at end-September, compared with 6.52 percent in the previous quarter and 5.90 percent in the same period last year. Fresh slippages fell 69 percent to Rs 2,777 crore.

Citi has accorded 'neutral' rating, with a target price of Rs 610 per share, while BNP Paribas maintains 'buy' at a target price of Rs 760 per share.

"Q2 clearly indicates a turning point in profitability for the bank, as net interest margins (NIM) are on an improving trend that should drive faster pre-provision operating profit growth," said Nomura.

Nomura raises price target to Rs 750 from Rs 630 earlier, while maintaining a 'buy' rating.

Deutshce Bank said Axis Bank is one of its top picks, expects a strong earnings revival and retained ‘buy’ with a target price of Rs 750.

CLSA has raised its target price to Rs 750 per share from Rs 690, while Jefferies also maintained 'buy' call at a target price of Rs 720 per share.

Axis Bank stock has been gaining for the last four days and has risen nearly 11 percent in the period.

Also, catch all the action and updates in our Market Live blog

.

(With inputs from Reuters)

First Published:Nov 5, 2018 2:44 PM IST