Amitabh Chaudhry over-promised and didn't deliver: Macquarie on negativity towards Axis Bank

The negative sentiment towards Axis Bank is caused by the "mismanagement of expectations" as CEO Amitabh Chaudhry over-promised and did not deliver, said Suresh Ganapathy, banking analyst, Macquarie Capital Securities.

"The bank, compared to other private sector banks, has a large SME portfolio which is a bit more vulnerable in the current economic slowdown. Even in some of the latest names which are supposed to be stressed, Axis Bank invariably has exposure to most of them. Some of these names were not even classified as a watch list," said Ganapathy in an interview with CNBC-TV18.

“Expectations were running high, the 18 percent RoE target looks far-fetched, capital raising was announced anywhere between $1.5-2 billion. So, it was a confluence of a whole lot of negative factors that resulted in the stock underperforming and consequently the investors have not taken it well,” he added.