shares closed 5.12 per cent lower at ₹1,219 on Tuesday, wiping off ₹65.80 from the previous close of ₹1,284.80, after Citi Research indicated the lender’s net interest margin recovery would be delayed beyond earlier expectations.
The stock, which opened at ₹1,277.10, saw heavy selling pressure with over 11.5 crore shares changing hands, generating a turnover of ₹1,422.63 crore. The scrip touched an intraday low of ₹1,216.90 during the session.
Citi Research maintained its ‘Neutral’ rating on Axis Bank with a target price of ₹1,285, suggesting minimal upside from current levels. The brokerage noted that management now expects NIMs to bottom out in Q4 FY26 or Q1 FY27, a delay from the previously anticipated Q3 FY26.
The management forecasts a shallow, ‘C’-shaped NIM trajectory towards a targeted 3.8 per cent over the next 15-18 months, Citi said. On the positive side, corporate lending is showing improved traction while the retail segment is recovering on pent-up demand, though sustainability requires monitoring.
Card stress is easing and personal loans are stabilizing, with export-oriented MSMEs showing no stress signs. However, gross slippages will likely face seasonal volatility in Q3 from agricultural segment facilities, though less severe than Q1.
The stock has gained 5.92 per cent over the past year but remains below its 52-week high of ₹1,304 touched on November 27.