Axis Bank regaining lost ground

Following mega fundraising plans, analysts have upgraded their rating

After being a laggard among private sector banks for a long time, things are reversing for Axis Bank. The stock has gained 11 per cent in the past one month, outperforming its peers and the broader markets. The recent Rs 11,600-crore fundraising plan announced by the lender and signs that asset quality stress could likely ease in the next four–five quarters have lent support to the stock price.

Interestingly, even as the capital infusion entails reasonable equity dilution — pegged at eight-nine per cent on a fully dilutive basis — the Street is quite upbeat with the progress. That the money