Axis Bank slips after announcing reduction in MCLR

Axis Bank fell 0.74% to Rs 469.25 at 09:54 IST on BSE after the bank reduced its lending rates based on marginal cost of funds based lending rate by 10 to 15 basis points across various tenors effective from Saturday, 17 November 2016.

The announcement was made after market hours on Friday, 16 December 2016.

Meanwhile, the BSE Sensex was down 79.83 points, or 0.3%, to 26,409.73

On BSE, so far 55,000 shares were traded in the counter, compared with average daily volume of 7.13 lakh shares in the past one quarter. The stock hit a high of Rs 472.40 and a low of Rs 467.75 so far during the day. The stock hit a 52-week high of Rs 638 on 7 September 2016. The stock hit a 52-week low of Rs 366.65 on 18 January 2016. The stock had outperformed the market over the past 30 days till 16 December 2016, falling 0.35% compared with the 1% rise in the Sensex. The scrip, however, underperformed the market in past one quarter, sliding 21.36% as against Sensex's 7.38% decline.

The large-cap private sector bank has equity capital of Rs 478.26 crore. Face value per share is Rs 2.

Axis Bank announced that it has reviewed and decided to reduce its marginal cost of funds based lending rates (MCLR) by 10 basis points (bps) in the overnight tenor and by 15 bps across all other tenors with effect from Saturday, 17 December 2016. The bank's MCLR for overnight loans will be 8.55%, for one month will be 8.55% and for three months will be 8.75%. The MCLR on 6-month loans will be 8.85% and for one-year loans the rate would be 8.9%, the bank said. MCLR for two-year loans would be at 8.95% and loans with three-year maturity would carry an MCLR of 9%, the bank said.

Axis Bank's net profit declined 83.34% to Rs 319.08 crore on 14.15% growth in total income to Rs 13698.77 crore in Q2 September 2016 over Q2 September 2015.

Axis Bank is one of the biggest private sector banks in India.

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