Shares of Axis Bank rose sharply on Tuesday after the lender reported a 4 per cent increase in its December quarter profit. The stock closed at Rs 1,314.45 on the BSE, up 4.31 per cent, and touched a high of Rs 1,333.50 during the day, marking a 5.82 per cent intraday gain. On the NSE, it ended at Rs 1,315.80, up 4.59 per cent.

The bank’s market capitalization rose by Rs 16,914 crore to Rs 4,08,185 crore, reflecting strong investor optimism. Broader market indices also saw gains, with the BSE Sensex climbing 319.78 points to 81,857.48 and the NSE Nifty rising 126.75 points to 25,175.40.

Axis Bank’s December quarter net profit increased to Rs 7,010.65 crore from Rs 6,742.99 crore in the same period last year, a growth of 4 per cent. On a standalone basis, the profit rose to Rs 6,489.57 crore from Rs 6,303.77 crore. Core net interest income grew 5 per cent to Rs 14,287 crore, supported by 14 per cent loan growth, although net interest margin slightly contracted to 3.64 per cent.

Asset quality showed improvement, with gross non-performing assets falling to 1.40 per cent from 1.46 per cent in the previous quarter, while overall provisions increased to Rs 2,245.92 crore from Rs 2,155.63 crore a year ago. Axis Bank’s CEO Amitabh Chaudhry said the lender aims to outpace system growth in a sustainable manner, maintaining focus on disciplined expansion and strong asset quality.