Axis Bank rises to be the best performing bank today!

Axis Bank Ltd., a private sector lender, rose to be the best performing bank on Friday after a report from a top-flight brokerage said it saw an improvement in profitability of its retail operations at the same time de-risking its corporate business.

Global brokerage CLSA said in a note to its clients that it set a price target of 670 rupees per share on Axis Bank against the backdrop of its corporate lending shifting to low-yield and lower risk loans. Retail assets had hit 40 percent of the loan book and are set to rise further, the brokerage added.

Axis Bank Futures rose 1.4 percent, or 7 rupees, to 519.80 rupees on the national Stock Exchange, where they were the best performing within the banking sector. Open Interest gained 3 percent. Nearly 60 lakh shares were traded on the counter against a 5-day average of 1.2 crore shares.

Axis Bank's market capitalisation has surged 30 percent in the past one year to 1.24 lakh crores as investors sought the relative safety of private sector lenders versus their PSU peers. The bank is trading 2.6 times its book value of 197 rupees. The stock has corrected from its most recent peak of 647 rupees.

Image credit: Indiatimes