Axis Bank Shares Plunge 5% as NIM Recovery Delayed: Brokerage View

• Axis Bank shares fell over 5% after its management revised the outlook on Net Interest Margin (NIM) recovery.
• The bank now expects NIM recovery to be delayed until Q4 FY2026 or Q1 FY2027, later than previously anticipated.
• Management indicated a shallow, C-shaped NIM recovery path, targeting 3.8% NIM in 15-18 months.
• Citi Research maintained a 'Neutral' rating with a target price of ₹1,285, noting progress in corporate and retail segments.
• Brokerage highlights easing credit card pressure, stabilizing personal loans, and a favorable fee-to-asset ratio.

Why It Matters: Axis Bank's revised NIM recovery timeline led to a significant share drop, despite some positive brokerage views.