Fri Jan 17 17:03:42 UTC 2025: ## Axis Bank Q3 Earnings Miss Expectations, Stock Dips Despite Buy Ratings

**Mumbai, India** – Axis Bank’s Q3 FY25 earnings, released today, fell short of analysts’ expectations, sending its shares down 3.3% to Rs 1,005 on the NSE. While the bank reported a 3.83% rise in net profit to Rs 6,304 crore, this represents a 9% sequential decline from the previous quarter. Higher slippages (up 22% QoQ to Rs 5,400 crore) and slower-than-expected deposit growth were cited as key factors.

Although interest income rose 11% year-on-year to Rs 30,954 crore, the net interest margin (NIM) narrowed to 3.93%, impacting profitability. Management anticipates subdued growth in both deposits and credit until FY26 due to a challenging economic environment and tight liquidity.

Brokerages responded by revising their target prices downwards. Nuvama Institutional Equities cut its target to Rs 1,220 (from Rs 1,335), Emkay Global to Rs 1,300 (from Rs 1,400), and HSBC to Rs 1,170 (from Rs 1,350). Despite the downgrades, all three maintained “buy” ratings, citing the stock’s valuation and potential for recovery. Morgan Stanley and CLSA also retained positive ratings, with target prices of Rs 1,300 and Rs 1,400 respectively.

Analysts highlighted concerns over the bank’s credit cost, now the highest among the top five banks, and its slowest deposit growth. HSBC noted that tight liquidity could significantly hamper medium-term loan growth.

The report also included information on the Traders Gurukul’s BOTS summit and a new functionality to improve user navigation and generate leads for brokers in the crypto market. However, this information was not directly related to Axis Bank’s performance.

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