Axis Bank , one of India's leading private sector banks, has reported improving deposit growth traction over the past two quarters, supported by enhanced system liquidity from Reserve Bank of India (RBI) measures. The bank's performance has been influenced by various factors, including changes in slippages and expectations for future growth.

Deposit Growth and RBI Measures

The bank's deposit growth has shown positive momentum, benefiting from RBI's liquidity enhancement measures. These measures include:

• A 100 basis point repo rate cut
• A reduction in the Cash Reserve Ratio (CRR)

These actions by the central bank have contributed to improved system liquidity, supporting Axis Bank's deposit growth.

Slippages and Technical Impact

Axis Bank reported a sharp increase in gross slippages for the June quarter:

Of the ₹8,200.00 crore in gross slippages for the June quarter, ₹2,709.00 crore was attributed to technical impact. The bank's management expects a sustained moderation in net technical slippages going forward.

Growth and Margin Expectations

Axis Bank's management has reiterated its guidance for loan growth:

• Gradual acceleration in loan growth
• Target of 2-3% above industry levels over the medium term

Regarding profitability, the bank expects its Net Interest Margins (NIMs) to recover to 3.80% once deposits reprice.

Analyst Outlook

Morgan Stanley has maintained an 'overweight' rating on Axis Bank with a price target of ₹1,325.00, suggesting a 17% upside potential. The stock's current analyst coverage shows a positive sentiment:

• Total analysts covering the stock: 52
• 'Buy' ratings: 42
• 'Hold' ratings: 10
• 'Sell' ratings: 0

Stock Performance

Axis Bank's shares traded flat at ₹1,132.00, reflecting a 4.50% gain over the past month.

The bank's improving deposit growth, expected moderation in technical slippages, and positive analyst outlook suggest a cautiously optimistic view of its near-term performance. However, investors should continue to monitor the bank's ability to meet its growth targets and manage its asset quality in the evolving economic environment.

Axis Bank , one of India's leading private sector banks, witnessed a significant block trade on the National Stock Exchange (NSE). The transaction involved approximately 781,429 shares changing hands at a price of Rs. 1,070.00 per share, resulting in a total deal value of Rs. 83.61 crores.

Block Deal Details

The block trade, which typically involves a large number of shares being traded in a single transaction, highlights the continued interest in Axis Bank's stock among institutional investors. Such deals are often executed off-market to minimize the impact on the stock's price during regular trading hours.

Recent Corporate Actions

While not directly related to the block deal, recent corporate filings by Axis Bank provide additional context on the bank's activities:

Equity Share Allotment

Axis Bank allotted 47,774 equity shares of Rs. 2 each, pursuant to the exercise of stock options/units under its ESOP/RSU Scheme. This allotment increased the bank's paid-up share capital from Rs. 6,205,045,520.00 to Rs. 6,205,141,068.00, representing 3,102,570,534 equity shares.

Investor Relations

The bank participated in the BofA Asia Pacific Conference held in Hong Kong. During this event, Axis Bank representatives interacted with several institutional investors, including:

• DWS Investment GmbH
• Hudson Bay Capital Management LP
• Metlife Investments Asia Limited
• North Rock Capital Management Limited
• Shikhara Investment Management LP

These corporate actions and investor interactions demonstrate Axis Bank's ongoing efforts to engage with the investment community and manage its equity structure.

Market Implications

The substantial block deal of Rs. 83.61 crores suggests continued institutional interest in Axis Bank's stock. While the identity of the buyer and seller in this transaction remains undisclosed, such large trades often indicate strategic moves by significant market players.

Investors and market analysts will likely monitor Axis Bank's performance closely in the coming days to assess any potential impact of this block deal on the stock's price and trading volume.

As one of India's largest private sector banks, Axis Bank's stock movements and large trades like this one are closely watched by market participants as indicators of broader trends in the banking and financial services sector.