Axis Bank Block Deal: 3.1 Crore Shares Worth Rs 3,465 Crore Change Hands In Pre-market Trade

Axis Bank witnessed a block deal involving 3.1 crore shares valued at nearly Rs 3,465 crore at Rs 1,120 per share during the pre-market session on Wednesday. The buyers and sellers in the transaction remain unknown.

The news comes on the back of Axis Bank's robust performance in Q2. The private lender reported a net profit growth of 10% YoY, reaching Rs 5,864 crore, buoyed by a healthy net interest income (NII) growth of 19% YoY and 3% QoQ. Despite high operating expenses, the bank managed to contain provisions, showcasing its resilience in a challenging financial environment.

Axis Bank's asset quality exhibited a positive trend in the September quarter. The gross non-performing asset (GNPA) ratio decreased to 1.73%, down from 1.96% in the previous quarter, while the net non-performing asset (NNPA) ratio stood at a commendable 0.36%. The operating profit for the quarter surged 12% YoY to Rs 8,632 crore.

A standout feature of the bank's performance was its robust capital adequacy ratio, reaching 93.9%, the highest in 20 quarters. The net interest margin (NIM) also showed improvement, rising to 4.11% from 3.96% YoY and 4.1% QoQ.

Provision and contingencies for Q2 stood at Rs 815 crore, with specific loan loss provisions at Rs 1,010 crore. Notably, Axis Bank did not utilize any COVID-19 provisions during the quarter, maintaining its financial stability. The bank holds cumulative provisions (standard and additional other than NPA) amounting to Rs 11,758 crore as of September 2023.

The bank's deposit portfolio witnessed a robust 18% YoY growth, with savings account deposits rising 16% YoY, current account deposits up by 7% YoY, and total term deposits increasing by 22% YoY. On the lending front, Axis Bank's advances rose by an impressive 23% YoY, reaching Rs 8.97 lakh crore as of September 30. Domestic net loans saw a significant jump of 26% YoY, while retail loans experienced a commendable growth of 23% YoY.

Notably, Axis Bank's shares have been on an upward trajectory, reaching a record high of Rs 1151.85 on December 5. The stock has gained over 10% in the last month, underscoring investor confidence in the bank's performance and potential.

In the days to come, all eyes will be on Axis Bank with investors awaiting further developments and potential revelations regarding the parties involved in this significant transaction.