UBS believes that the lender is well placed to gain market share in deposits. It also observed that asset quality clean-up was nearing the end.
Shares of Axis Bank fell 2 percent even as UBS raised target price on the stock from Rs 765 from Rs 675. The broking firm sees a potential upside of 16.5 percent.
The stock touched an intraday high of Rs 671.00 and an intraday low of Rs 643.60.
UBS believes that the lender is well placed to gain market share in deposits. It also observed that asset quality clean-up was nearing the end.
Going forward, it expects a re-rating on the stock as visibility on asset quality improves in second half and growth accelerates.
The stock was in the news recently when it rose due to a buzz of a management change at the bank. According to a report in The Economic Times, Amitabh Chaudhry of HDFC Life is likely to be the successor to Shikha Sharma, Axis’s current CEO and MD.
The stock touched an intraday high of Rs 641.80 and an intraday low of Rs 635.00.
The report further quoted block deal data from exchanges, which revealed that the executive sold over 11.62 lakh shares between April 26 and August 20, 2018 on the NSE.
“Amitabh has appeared for the interview and a final approval from the Reserve Bank is pending,” a source privy to the development told the publication.
At 13:45 hrs Axis Bank was quoting at Rs 648.50, down Rs 8.05, or 1.23 percent, on the BSE.