Axis Bank stock rises up to 9% on likely fund infusion from Bain Capital
BT Online October 31, 2017
Private sector lender Axis Bank's stock rose in Tuesday's trade after an Economic Times report said Bain Capital is in advanced talks with the bank to buy 5 per cent stake.
At 2:28 pm, the stock was up 8 percent or 39 points at 523.50 level on the BSE.
The stock is up 12.45 percent since the beginning of this year and rose 4.01 percent on an yearly basis.
According to the report, the bank is in advanced talks with Bain Capital to invest between Rs 4,800-6,400 crore, in what could be one of the largest private equity investments in the Indian banking sector.
Axis Bank was in news on October 17, 2017 after the lender reported a 36 percent rise in net profit at Rs 432 crore in the second quarter.
The stock fell after the lender reported percentage of gross non-performing assets (NPAs) rising to 5.90 percent in Q2 from 5.03 percent in the sequential quarter ended June 30, 2017.
Net NPAs also inched up to 3.12 per cent as against 2.02 per cent in the same quarter of the previous fiscal.
Subsequently, gross NPAs rose in absolute terms to Rs 27,402 crore at the end of September as compared to 16,379 crore at the end of the second quarter of the previous year.
On October 17, 2017, the stock closed at 513 level but slipped to 449 level by the end of trade on October 23 on asset quality worries.