Axis Bank Stock Plunges After Lackluster Q1 Earnings

Axis Bank's stock dropped over 5% due to uninspiring June quarter earnings. The stock closed at Rs 1,175.35 on BSE, marking a 6.75% intraday fall and 5.19% overall decline. Despite a 5.66% rise in consolidated net profit, asset quality issues and high provisions weighed down investor sentiment.

Axis Bank's stock tumbled over 5 percent on Thursday as the company's June quarter earnings failed to impress investors.

Closing at Rs 1,175.35, the stock decreased by 5.19 percent from its day's low of Rs 1,156 on the BSE. On the NSE, it settled at Rs 1,176.25, down 5.08 percent.

The stock was the biggest laggard among Sensex and Nifty firms, and the bank's market valuation decreased by Rs 19,816.9 crore to Rs 3,63,296.40 crore.

Following a sharp intra-day drop, the 30-share BSE Sensex closed 109.08 points or 0.14 percent lower at 80,039.80, while the NSE Nifty dipped 7.40 points or 0.03 percent to 24,406.10.

Axis Bank's earnings reflected a 5.66 percent rise in consolidated net profit for the June quarter at Rs 6,436 crore, limited by challenges in asset quality.

On a standalone basis, net profit rose 4 percent to Rs 6,035 crore. Core net interest income increased by 12 percent to Rs 13,448 crore, supported by a stable Net Interest Margin (NIM) at 4.05 percent and 14 percent growth in advances. Other income grew by 14 percent to Rs 5,783 crore.

However, gross slippages jumped to Rs 4,793 crore in the June quarter from Rs 3,471 crore in the previous quarter and Rs 3,990 crore in the same period last year.

Domestic brokerage Stoxbox labeled the earnings as 'muted' and pointed out high provisions.

(With inputs from agencies.)