Fitch Ratings has affirmed India-based Axis Bank Limited's Long-Term Issuer Default Rating (IDR) at 'BB+' with a Negative Outlook and its Viability Rating (VR) at 'bb'.
The Negative Outlook mirrors the Outlook on India's 'BBB-' sovereign rating, which was revised to Negative, from Stable, on 18 June 2020 due to the impact of the escalating coronavirus pandemic on India's economy.
The operating environment for Indian banks remains challenging, despite a moderate revival in economic activity following the gradual easing of the lockdown since May 2020. Fitch revised its forecast for India's real GDP growth for the fiscal year ending March 2021 (FY21) to -10.5%,from the previous forecast of -5.0% in September 2020, but expects growth to rebound to 11.0% in FY22 from a low base. We believe the economic contraction is likely to weaken and extend the asset-quality cycle, which could lead to a rise in stressed loans and, ultimately, more write-offs over the next several years.
Shares of AXIS BANK LTD. was last trading in BSE at Rs.614.55 as compared to the previous close of Rs. 602.6. The total number of shares traded during the day was 427855 in over 6941 trades.
The stock hit an intraday high of Rs. 616.45 and intraday low of 603.5. The net turnover during the day was Rs. 261160546.