The private lender posted a 3% rise in net profit for the three months ended December 31, while analysts had expected profit to fall
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REUTERS/ANUSHREE FADNAVIS
Axis Bank jumped nearly 6% on Tuesday and was on course for its biggest daily percentage rise in 15 months after the private lender reported a surprise rise in quarterly profit on healthy loan growth.
The stock jumped to a 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 profit to fall, according to data compiled by LSEG, with retail loan disbursements up in the quarter.
Brokerage Citi upgraded the stock to “buy” from “neutral” after the strong third-quarter earnings, citing enhanced visibility on loan growth outperforming the system average and improved asset quality trajectory.
Axis Bank was the top gainer among benchmark Nifty 50 index and financials on the day. The 50-stock index was down 0.2% and financials were flat, as gains in Axis Bank were offset by Kotak Mahindra Bank’s 3.9% fall.
The rise in Axis Bank’s shares was supported by strong volumes. More than 11.7 million shares changed hands in the couple of hours since the market’s open on the day, about 2.4x the 30-day average daily volume.
While the lender’s credit costs were largely flat from previous quarter, Macquarie said it should be seen as a positive considering the increase in both normal and technical slippages attributable to the agri seasonality.
“We believe credit cost could decline in the coming quarters and provide further cushion to return on assets,” Macquarie said.
Published on January 27, 2026
