Axis Bank gained 1.82% to Rs 441.35 at 10:28 IST on BSE, after the bank said that it has reduced its Marginal Cost of Funds based Lending Rate by 15 basis points across all tenors effective from 18 April 2016.
The announcement was made before market hours today, 13 April 2016.Meanwhile, the S&P BSE Sensex was up 393.77 points or 1.57% at 25,539.36
On BSE, so far 1.01 lakh shares were traded in the counter as against average daily volume of 12.89 lakh shares in the past one quarter. The stock hit a high of Rs 442.70 and a low of Rs 438.35 so far during the day. The stock had hit a 52-week high of Rs 613.40 on 16 July 2015. The stock had hit a 52-week low of Rs 366.65 on 18 January 2016. The stock had outperformed the market over the past one month till 12 April 2016, rising 5.09% compared with 1.73% rise in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 6.73% as against Sensex's 1.88% rise.
The large-cap private sector bank has equity capital of Rs 476.79 crore. Face value per share is Rs 2.
Axis Bank said that the Marginal Cost of Funds based Lending Rate (MCLR) for overnight loans will be 8.95%, for one month will be 9.05% and for three months will be 9.25%. The MCLR on 6-month loans will be 9.3% and for one-year loans the rate would be 9.35%. MCLR on two-year loans will be 9.45% and for three years loans will be 9.5%, the bank said. Meanwhile, the bank also announced reduction in the base rate by 5 basis points to 9.45% from 9.5% effective from 18 April 2016.
The cut in lending rate follows reduction in policy rates by the Reserve Bank of India (RBI) after a scheduled policy review on 5 April 2016. The RBI cut its benchmark policy rate viz. the repo rate by 25 basis points to 6.5% from 6.75% on 5 April 2016. At that time, the central bank also announced the fine-tuning of its liquidity management framework.
Axis Bank's net profit rose 14.5% to Rs 2175.30 crore on 14.7% rise in total income to Rs 12531.11 crore in Q3 December 2015 over Q3 December 2014.
Axis Bank is one of the biggest private sector banks in India.
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