HDFC Mutual Fund has increased its stake in Axis Bank to 5.02%, up from 4.97%, indicating its confidence in its growth trajectory. The fund house disclosed that as of the close of business on January 6, 2025, it held 15,53,35,021 shares of Axis Bank, surpassing the 5% regulatory disclosure threshold under SEBI's Substantial Acquisition of Shares and Takeovers Regulations, 2011.
Earlier, HDFC Mutual Fund held 15,38,45,705 shares or 4.97% of the stake in the bank. It revealed this stake was acquired recently, 0.05% of the total equity shares to be precise, in the form of 14,89,316 shares. The total share stakes of HDFC in Axis Bank is still estimated at ₹6,106.43 crore.
Axis Bank has consistently shown financial performance. It posted a 9% year-on-year increase to ₹12,234 crore of net interest income (NII), together with a good Net Interest Margin (NIM) of 3.99%. The bank also experienced an 11% increase in fee income, mostly from retail fees, contributing to 92% of the total fee revenue.
Deposits grow by 14% annually. Here, term deposits rose rapidly by 21% while Current Account and Savings Account (CASA) remained at a modest 4% increase. Net advances rose by 11%, mainly due to a 15% increase in retail loans and a 16% increase in SME loans. It also dominates the UPI Payer Payment Service Provider segment in the country, holding a 31% market share.
Over the last year, it has decreased by more than 4%, with its current price of ₹1,069.7 as of 08-01-2025. Equity analysts are positive, with Prabhudas Liladher rating the stock as a 'BUY' at ₹ 1,530, 44% higher.
HDFC Mutual Fund was formerly the largest investor in the bank, with a 4.42% stake. The December quarter shareholding pattern has not been disclosed yet, but the recent stake buy indicates a steep rise in HDFC's stake in Axis Bank over the quarter. Apart from HDFC, the other popular fund houses that own stakes in Axis Bank include SBI, Nippon, Kotak, and ICICI Prudential; the mutual funds own only 25.60% of the stakes for the September quarter.