Axis Bank shares were trading as the top loser on NSE since opening bell today, falling as much as 5.21% after S&P Global Ratings lowered the lender's ratings due to increased economic risks for banks operating in India.
Credit rating agency S&P Global Ratings (S&P) downgraded the Foreign Currency Ratings of the bank, saying, "We lowered our ratings on Axis to reflect our expectation that heightened economic risks facing India's banking system will affect the bank's asset quality and financial performance."
S&P said the stable outlook reflects view that ratings on Axis already factor in some deterioration in the bank's asset quality and performance over the next 12 months.
Axis Bank share price opened with a loss of 2.56% today at Rs 414.15 and later touched an intraday low of Rs 402.9, falling 5.21% against the last closing of Rs 425.05 on BSE.
The stock has fallen 5.86% in one week and 46% since the beginning of this year. Market capitalisation of the firm stood at Rs 1,14,249.60 crore as of today's session.
Axis Bank share price is trading lower than 5, 20, 50, 100 and 200-day moving averages.
"While Axis' asset quality is superior to the Indian banking sector average, its level of non-performing assets (NPAs) will likely remain high compared to international peers'," S&P said.
The rating agency added that it could lower the ratings on Axis if the bank's stressed assets rise significantly beyond the system average over the next few quarters.
The regulatory filing by Axis Bank added," Further, please note that as confirmed by S&P, the rating report inadvertently mentions the Bank being on CreditWatch. In this regard, S&P has confirmed that it is an editorial error and Bank is on STABLE outlook."