Axis Bank shares down by more than 3% today

Axis Bank shares are down today. At 11:39 a.m. 16^th December, 2025, Axis Bank shares are down by 3.81%, trading at Rs 1,235.80. Nifty 50 index is down by 0.47% at this time. Axis Bank shares are down today because of the statement of its management that it expects the bank’s net interest margins (NIMs) to bottom out in the fourth quarter of FY26 or first quarter of FY 27. The expectation was that NIM of the bank would bottom out in the third quarter of FY 26 and then start rising.

NIM under pressure after interest rate cuts by RBI

A bank mainly earns its revenues from net interest income (NII). NII is the difference between the interest that the bank charges from its borrowers and the interest that it pays to its depositors. A bank raises funds from depositors and then lends them to borrowers. NIM is NII as a percentage of interest earning assets of the bank. A bank’s interest earning assets are the loans that it has given.

Interest rate cuts by RBI has put some downward pressure on the NIM of banks. Banks have cut down the interest rates that they charge on loans by much more than the cut they have made on the rates that they pay on deposits, post lowering of interest rate by RBI. Demand for loans has also gone up because of lower interest rates. So increase in NII may happen at a slower pace than the increase in loans (assets) given by the bank. This may cause NIM to go down.

Axis Bank shares have risen by around 14.67% YTD in 2025

Axis Bank is targeting NIM of around 3.8% over the next 1- 1.5 years. Axis Bank shares have gained 14.67% year-to-date (YTD) in 2025. Nifty 50 index has gained around 9.10% in this period. Axis Bank shares have outperformed the Nifty 50 index by more than 5% this year.

Nifty Private Bank index has gained 16.18% YTD in 2025. Axis Bank’s stock has around 20.10% weight in the index. Axis Bank shares have marginally underperformed the Nifty Private Bank index, by around 1.5%, till date in 2025.

Disclaimer : This content is only for informational purpose. It does not make any recommendation to act or invest.

Source : NSE, Axis Bank