Axis Bank stock rose about 10 per cent to hit a record high on Friday and was the leading gainer on the Nifty 50 index, a day after the private lender reported a better-than-expected 70 per cent increase in profit in the September quarter.
On the NSE, Axis bank stock closed at Rs 904 per share, a gain of 9.5 per cent, after hitting a record high of Rs 906 per share.
On Thursday, the private lender reported a 66.29 percent increase in its consolidated net profit for the September quarter, coming in at Rs 5,625.25 crore. That increase was primarily due to margin expansion and a significant drop in bad loan charges.
The third largest private sector lender recorded a rise in profit after tax of 70 per cent for the July to September period, totaling Rs 5,329.77 crore.
The assets increased by 14 per cent, while the net interest margin increased by 0.57 percentage points to 3.96 percent, driving up the core net interest income by 31 per cent to Rs 10,360 crore.
A loss of Rs 86 crore on the trading income side, as opposed to gains of Rs 473 crore in the same period last year, however, reduced the other income to 4 per cent growth of Rs 3,941 crore.
Amitabh Chaudhry, Managing Director and Chief Executive of the bank, stated that the bank had already met the year-end forecast on NIMs, providing it with some cushion, and that the bank will now more carefully consider expansion options while maintaining margins.