Shares of Axis Bank declined 3.3 per cent in morning trade on Thursday after the government said it will exit Axis Bank with the sale of 1.55 pc stake. The stock slumped 3.34 per cent to Rs 845.15 on the BSE. At the NSE, it fell 3.23 per cent to Rs 845.50.

The Specified Undertaking of the Unit Trust of India (SUUTI), under the union government, plans to sell 4.65 crore shares representing 1.55 per cent stake in Axis Bank, as per a regulatory filing on Wednesday.

With the sale, the government would completely exit the private sector lender.

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As of September 2022, the SUUTI held 4,65,34,903 shares representing 1.55 per cent stake in the bank. The government, at the current market price, is expected to realise about Rs 4,000 crore from the share sale.