Shares of Axis Bank on Monday declined over 5 per cent after S&P Global Ratings lowered its scores of the lender as a consequence of elevated financial dangers for banks working in India.
The inventory plunged 5.21 per cent to Rs 402.90 on BSE. On NSE, it tanked 5.29 per cent to Rs 402.35.
“We lowered our ratings on Axis to reflect our expectation that heightened economic risks facing India’s banking system will affect the bank’s asset quality and financial performance,” S&P stated on Friday.
While Axis Bank’s asset high quality is superior to the Indian banking sector common, its stage of non-performing property will doubtless stay excessive in comparison with worldwide friends, it famous.
The company stated financial circumstances have turned antagonistic for Indian banks as a consequence of COVID-19 and drastic efforts to curtail the unfold of the virus have resulted in a pointy financial contraction.