The foreign institutional investor Morgan Stanley bought a stake worth Rs. 2,083 crore in India’s third-largest private bank by market capitalisation via a bulk deal on June 21st.
With a market cap of Rs. 3.8 lakh crore, the shares of Axis Bank Limited moved up by nearly 4.15 percent over the previous five trading sessions.
According to the June 21st bulk deal data available with the NSE, a leading global financial services firm Morgan Stanley through Morgan Stanley & Company International Plc bought 1.7 crore equity shares, representing a 0.5 percent stake, in Axis Bank valued at Rs. 2,083.77 crore, at an average price of Rs. 1,225.75.
In terms of financials, the bank reported a growth in the after-tax profit from a loss of Rs. 5,371.2 crore in Q4 FY22-23 to a profit of Rs. 7,613.55 crore in Q4 FY23-24, but the net NPA declined by 8.74 percent from Rs. 3,558 crore to Rs. 3,247 crore, during the same period.
The bank’s Net Interest Income (NII) grew 11 percent on a year-on-year basis and 4 percent QoQ to Rs. 13,089 crores, while its Net interest margin (NIM) for Q4 FY23-24 stood at 4.06 percent and grew 5 bps QoQ.
The return on equity (ROE) stood at 16.9 percent in FY23-24, up from 8.33 percent in FY22-23, while Return on Capital Employed (RoCE) grew from 1.67 percent in FY22-23 to 2.71 percent in FY23-24.
In the last six months, the bank has delivered positive returns of about 12.5 percent and nearly 28.2 percent in the last one year. So far in 2024, it has given positive returns of around 12 percent.
As of March 2024, the shareholding pattern of Axis Bank shows that the Promoters hold 8.22 percent in the bank, while the Foreign Institutional Investors (FII) hold a majority stake of 53.84 percent. The retail investors and Domestic Institutional Investors (DII) hold a 7.82 percent and 30.13 percent stake, respectively.
Incorporated in 1993, Axis Bank Limited provides a complete range of banking and financial services including retail banking, wholesale banking and treasury operations.
Written by Shivani Singh
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