Axis Bank Block Deal on Dec 13: Equity shift of 1.1% likely at ₹1,109 per share

Private sector lender Axis Bank is poised for a block deal scheduled for Wednesday (December 13), anticipating a potential shift in ownership of up to 1.1% equity, equivalent to 3.34 crore shares.

The floor price for the transaction has been set at ₹1,109 per share, indicating a 1.95% discount to the current market price (CMP) at the National Stock Exchange (NSE), sources privy to the developments told CNBC-TV18.

The likely sellers in this transaction are BC Asia Investments VII, BC Asia Investments III, and Integral Investments South Asia IV, sources in the know told CNBC-TV18. As part of the deal, there will be a lock-in period of 90 days.

Axis Bank reported a 10% year-on-year (YoY) growth in its standalone net profit at Rs 5,863.56 crore for the quarter ended September, compared to Rs 5,330 crore in the same period a year ago. The net interest income or NII, the difference between interest earned and interest expended, grew by 18.87% YoY to Rs 12,315 crore.

Axis Bank's asset quality improved further during the quarter under review. The gross non-performing asset (GNPA) ratio fell to 1.73% as of September 30, from 1.96% a quarter ago. The net non-performing asset (NNPA) ratio stood at 0.36% lower than 0.41% a quarter ago.

The operating profit for the quarter under review rose 12% YoY to Rs 8,632 crore. The capital adequacy ratio for the private sector lender stood at 93.9%, the highest in 20 quarters. The net interest margin (NIM) improved to 4.11% from 3.96% YOY and 4.1% QOQ.

Shares of Axis Bank Ltd ended at ₹1,131.10, up by ₹14.25, or 1.28%, on the BSE.