Shares of Axis Bank slipped over 5% to Rs 1,099 on July 18 as the lender posted a disappointing financial performance for the June quarter (Q1FY25). The bank reported muted growth in profit and net interest income (NII), along with a sharp rise in slippages and contraction in margins.<\/p>\n
This weak performance triggered a wave of downgrades from major brokerages, who cited worsening asset quality and increasing margin pressure as the main concerns.<\/p>\n
\n“Axis Bank’s Q1 numbers fell short of expectations on several fronts \u2014 from profit to asset quality and margins,” analysts noted.<\/p>\n<\/blockquote>\n
GDRs Also Slide on Weak Earnings<\/h2>\n
It wasn\u2019t just the domestic stock that took a hit. Axis Bank\u2019s Global Depositary Receipts (GDRs) also declined sharply, falling 5% to $64.3. The drop followed the bank’s weaker asset quality metrics in the June quarter, sparking concerns among international investors as well.<\/p>\n
Also Read: Tata Sons to Inject $400 Million into Tata Digital to Revive E-Commerce Operations<\/a><\/p>\n
Brokerages Cut Ratings, Lower Targets<\/h2>\n
Brokerages were quick to respond to the Q1 miss.
Nuvama Institutional Equities downgraded Axis Bank from \u201cbuy\u201d to \u201chold\u201d, slashing its target price to Rs 1,180 per share. The brokerage flagged a significant miss in Net Interest Margins (NIM) and highlighted a worrying rise in core slippages and credit costs, both on a quarter-on-quarter and year-on-year basis.<\/p>\n\n\u201cMargins have come in lower than expected, and fresh slippages have seen a sharp rise, which raises red flags on asset quality,\u201d Nuvama said in its report.<\/p>\n<\/blockquote>\n
In response to the weak outlook, Nuvama cut its FY26 and FY27 earnings estimates for Axis Bank by 5% and 6%, respectively.<\/p>\n
Key Concerns for Investors<\/h3>\n
The Q1 results have brought several key concerns to the forefront:<\/p>\n
\n
- \n
Shrinking margins (NIM), a critical profitability metric for banks<\/p>\n<\/li>\n
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Sharp rise in slippages, indicating fresh stress in the loan book<\/p>\n<\/li>\n
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Muted profit and NII growth, failing to meet analyst expectations<\/p>\n<\/li>\n
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Rising credit costs, reflecting increased provisioning<\/p>\n<\/li>\n<\/ul>\n
These issues have not only impacted sentiment but have also raised doubts about the bank\u2019s near-term growth trajectory.<\/p>\n
\n“The rising stress in the loan book and lower profitability metrics may weigh on Axis Bank’s performance in the coming quarters,” experts cautioned.<\/p>\n<\/blockquote>\n
What Lies Ahead for Axis Bank?<\/h2>\n
While Axis Bank remains a strong player in the private banking space, the latest results have clearly shaken investor confidence. Much will depend on whether the bank can recover margins, improve asset quality, and restore earnings momentum in the next few quarters. Until then, the stock may face pressure as analysts and investors closely track the bank’s asset quality trends and profitability metrics.<\/p>\n
Check This:<\/h3>\n
\n
- Axis Bank Stock Price<\/a><\/li>\n
- HDFC Bank Stock Price<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"
Shares of Axis Bank slipped over 5% to Rs 1,099 on July 18 as the lender posted a disappointing financial performance for the June quarter (Q1FY25). The bank reported muted growth in profit and net interest income (NII), along with a sharp rise in slippages and contraction in margins. This weak performance triggered a wave […]<\/p>\n","protected":false},"author":7,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[615],"tags":[],"ppma_author":[1384],"class_list":{"0":"post-11994","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-stock-market-news"}," _eael_post_view_count":0,"authors":[{"term_id":1384,"user_id":7,"is_guest":0,"slug":"jitesh-kanwariya","display_name":"Jitesh Kanwariya","avatar_url":{"url":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/08\/Jitesh-Kanwriya.jpeg","url2x":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/08\/Jitesh-Kanwriya.jpeg"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/11994","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=11994"}],"version-history":[{"count":3,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/11994\/revisions"}],"predecessor-version":[{"id":12000,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/11994\/revisions\/12000"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/11995"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=11994"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=11994"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=11994"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=11994"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}