Axis Bank rises 5% despite weak Q4 results

The stock was up 5% to Rs 522 on expectation of sustained ROA expansion over the next 24 months to drive a multiple expansion as asset quality distractions recede.

Shares of Axis Bank were up 5% at Rs 522 per share on the BSE despite the private sector lender reporting its first net loss of Rs 21.8 billion for the quarter ended March 2018 (Q4FY18), as non-performing assets (NPAs) soared and provisions for bad loans surged three times over the corresponding quarter last year.

Most of the local brokerage houses maintain ‘buy’ or ‘accumulate’ rating on the Axis Bank on expectation of sustained return on assets (ROA) expansion over the next 24 months to drive a multiple expansion as asset quality distractions recede.

Axis Bank reported the