Axis Bank Shares Tumble Despite Earnings Boost

Axis Bank's shares experienced a significant dip, falling almost 5 percent, following its March quarter earnings report which did not meet investor expectations. On Monday, the bank's stock declined by 4.76 percent on the BSE, closing at Rs 1,301, while at the NSE, it dropped 4.83 percent to Rs 1,299.90.

The consolidated net profit for the March quarter increased by 1.89 percent, totaling Rs 7,631.72 crore. However, the bank allocated Rs 2,001 crore to anticipate potential repercussions from the ongoing West Asia conflict on its loan portfolio. On a standalone basis, the net profit fell to Rs 7,071.31 crore from Rs 7,117.50 crore year-over-year.

Axis Bank's core net interest income rose by 5 percent to Rs 14,457 crore, driven by a 19 percent growth in advances. Nonetheless, progress was hampered by a 0.35 percent reduction in the net interest margin, settling at 3.62 percent. Additionally, the bank's other income totaled Rs 6,023 crore, marking an 11 percent decrease compared to the previous year.

(With inputs from agencies.)