Axis Bank shares slide 4% on reports of delay in NIM recovery; details here

Shares of Axis Bank fell over 4 per cent on Tuesday amid reports of a delay in net interest margin recovery, which would weigh on the lender's upcoming earnings. 

 

The lender's stock fell as much as 4.4 per cent during the day to ₹1,228.4 per share, the biggest intraday fall since July 19 this year. The Axis Bank stock pared losses to trade 4.2 per cent lower at ₹1,230 apiece, compared to a 0.55 per cent decline in Nifty 50 as of 1:09 PM. 

 

Shares of the company fell for the second straight session and currently trade at 2.7 times the average 30-day trading volume, according to Bloomberg. The counter has risen 15.5 per cent this year, compared to a 9.5 per cent advance in the benchmark Nifty 50. Axis Bank has a total market capitalisation of ₹3.82 trillion.   FOLLOW LATEST STOCK MARKET UPDATES TODAY LIVE

Why are Axis Bank shares falling?

 

According to media reports, Global brokerage Citi Research said that Axis Bank management indicated a delay in net interest margin recovery, with NIMs likely to bottom out later than previously guided. NIMs are now expected to trough in either the fourth quarter or the first quarter of FY27, reports said.

 

The company informed Citi that margins are likely to follow a shallow, C-shaped recovery path, with NIMs targeted at 3.8 per cent over the next 15-18 months, from 3.73 per cent in the second quarter of FY26. The brokerage has a 'Neutral' rating, with a price target of ₹1,285 per share on the stock.  ALSO READ | Eternal slips 5% on huge volumes; sharpest intra-day fall in 7 months

Axis Bank Q2 recap

 

Axis Bank reported a 26 per cent year-on-year (Y-o-Y) decline in net profit to ₹5,090 crore for the second quarter (July-September) of 2025-26 (Q2FY26) primarily due to a one-time standard asset provision of ₹1,231 crore. 

 

Fresh slippages stood at ₹5,696 crore in Q2FY26, up 28 per cent Y-o-Y, though down 30 per cent sequentially. The one-time standard asset provision also pushed up total provisions and contingencies to ₹3,547 crore, up 61 per cent Y-o-Y but down 10 per cent sequentially.

 

Asset quality improved during the quarter, with gross NPAs at 1.46 per cent, down 11 basis points (bps) from the previous quarter while net NPAs fell to 0.44 per cent. The bank’s advances rose 12 per cent Y-o-Y, and 5 per cent sequentially to ₹11.16 trillion in Q2FY26. Retail loans grew 6 per cent Y-o-Y, and 2 per cent sequentially, accounting for 57 per cent of total advances.