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Can weak operational performance in Q4 delay Axis Bank's re-rating?

Axis Bank Q4 result review: Analysts do not expect valuation to catch up with peers in light of the NII undershoot, impending dilution to fund the Citi deal, and higher operating expenditure guidance.

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4 min read Last Updated : Apr 29 2022 | 11:31 PM IST

Axis Bank shares plunged 6.5 per cent to Rs 729 apiece on the BSE on Friday as lower-than-expected growth in net interest income (NII), and a surprising margin compression worried the Street. In comparison, the benchmark S&P BSE Sensex index slipped 0.8 per cent.

"Axis Bank reported a mixed bag in Q4FY22. While net profit of Rs 4,118 crore outperformed, driven by lower credit cost, NII undershot by growing just 1.9 per cent QoQ/17 per cent YoY, missing Bloomberg consensus by 3.5 per cent, and lagging HDFC Bank’s 2 per cent and ICICI’s 3 per cent," said analysts at Edelweiss Securities.

They,

Topics : Axis Bank Markets Q4 Results

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