Axis Bank edges higher after cutting base rate

Axis Bank rose 1.08% to Rs 198.15 at 10:30 IST on BSE after the bank said that it has reduced the base rate by 10 basis points to 10.15% per annum from 10.25% with effect from 15 October 2014.

The bank made the announcement after market hours on Thursday, 16 October 2014.

Meanwhile, the BSE Sensex was down 13.94 points or 0.05% at 25,985.40.

On BSE, so far 1.11 lakh shares were traded in the counter, compared with an average volume of 3.52 lakh shares in the past one quarter.

The stock hit a high of Rs 399.50 and a low of Rs 395 so far during the day. The stock hit a record high of Rs 423.70 on 11 September 2014. The stock hit a 52-week low of Rs 202.33 on 13 November 2013.

The stock had outperformed the market over the past one month till 16 October 2014, falling 1.24% compared with 1.86% fall in the Sensex. The scrip had, however, underperformed the market in past one quarter, rising 0.22% as against Sensex's 1.76% rise.

The large-cap private sector bank has an equity capital of Rs 471.98 crore. Face value per share is Rs 2.

The bank attributed the reduction in base rate to decline in cost of funds. The cost of funds has eased due to softening of interest rates based on improving liquidity and other macroeconomic developments, Sidharth Rath, President (Treasury, Business Banking & Capital Markets), said.

Base rate is a minimum rate below which banks are not permitted to lend.

Axis Bank unveils Q2 results today, 17 October 2014.

Axis Bank's net profit rose 18.3% to Rs 1,666.76 crore on 10.2% rise in total income to Rs 9980.47 crore in Q1 June 2014 over Q1 June 2013.

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