Axis Bank Shares Plunge 5% as Margin Recovery Delayed

• Axis Bank shares fell nearly 5% on Tuesday, December 16, becoming the top loser on the Nifty50 index.
• The decline follows management's revised outlook on Net Interest Margin (NIM) recovery, now expected to bottom out later.
• NIMs are projected to trough in Q4 FY25 or Q1 FY26, a delay from the earlier Q3 FY25 guidance.
• Management anticipates a shallow, C-shaped recovery, targeting 3.8% NIMs over the next 15-18 months.
• Citi Research maintains a 'Neutral' rating, noting corporate/retail recovery but also potential Q3 seasonal slippages.

Why It Matters: Axis Bank's delayed margin recovery outlook led to a 5% share drop, impacting investor sentiment.