Archive · 17 Dec 2025
Axis Bank Shares Drop 5% on Delayed NIM Recovery
Axis Bank's share price fell by 5.12% on December 16, 2024, because the bank's management said that the improvement in their net interest margins (NIMs) will take longer than expected.
They now think NIMs will be at their lowest in either the fourth quarter of the fiscal year 2025-26 or the first quarter of the next fiscal year.
This is later than they previously thought.
The bank also said they expect NIMs to reach 3.8% in the next 15-18 months, which is a bit higher than the current 3.73%.
Because of this news, the share price dropped to ₹1,216.90.
A brokerage firm, Citi Research, kept their rating for the bank as 'Neutral' and set a target price of ₹1,285 per share.
The stock has gained 5.92% over the past year but remains below its 52-week high of ₹1,304.
Axis Bank shares closed 5.12% lower at ₹1,219 on December 16, 2024.
Citi Research maintained a 'Neutral' rating with a target price of ₹1,285.
Management revised NIM recovery timeline to Q4 FY26 or Q1 FY27.
NIMs expected to reach 3.8% in 15-18 months, up from 3.73% in Q2 FY26.
Heavy selling pressure with over 11.5 crore shares traded, generating a turnover of ₹1,422.63 crore.
- Who
- Axis Bank
- What
- Share price drop due to delayed NIM recovery
- When
- December 16, 2024
- Where
- BSE (Bombay Stock Exchange)
- Why
- Management indicated delayed NIM recovery and a shallow 'C'-shaped NIM trajectory
Investors
Bank Management
NIM Recovery Timeline
Investors
Investors are concerned about the delayed NIM recovery, leading to selling pressure.
Bank Management
Management revised the NIM recovery timeline to Q4 FY26 or Q1 FY27 due to market conditions.
- Bank Name
- Axis Bank
- Share Price Drop
- 5.12%
- Lowest Share Price
- ₹1,216.90
- Expected NIM Bottom
- Q4 FY26 or Q1 FY27
- Target NIM
- 3.8% in 15-18 months
- Current NIM
- 3.73% in Q2 FY26
- Brokerage Rating
- Neutral
- Price Target
- ₹1,285 per share
- Shares Traded
- 11.5 crore
- Turnover
- ₹1,422.63 crore
- Yearly Gain
- 5.92%
- 52-Week High
- ₹1,304
Sources
Axis Bank share price crashes 4% today. What's ailing the private lender? Explained
Axis Bank Shares Drop Sharply, Investors Disappointed As Management Signals Slow NIM Recovery
Axis Bank shares closed 5% lower as NIM recovery pushed to FY27
Policy tailwinds to lift India’s growth to 7.5% in FY27: Axis Bank
Axis Bank Expects India GDP To Grow 7.5 per cent
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