Axis Bank Shares Slide Amid Quarterly Earnings Miss

Axis Bank shares fell nearly 5% as its December quarter earnings failed to meet market expectations. The bank's growth in net profit and interest income was overshadowed by asset quality pressures in the retail segment. Market valuation decreased, reflecting ongoing macroeconomic challenges.

Axis Bank's shares plummeted by nearly 5 percent on Friday following disappointing December quarter earnings that fell short of market expectations. The stock closed at Rs 991.25 on the Bombay Stock Exchange after hitting a 52-week low during the trading session.

The bank, India's third-largest private sector lender, reported a 4 percent rise in net profit to Rs 6,304 crore for the quarter. However, asset quality challenges, particularly in the retail segment, contributed to a significant drop in market valuation by Rs 15,136.3 crore.

Executives noted the prevalent macroeconomic challenges, including sluggish GDP growth, impacting loan repayments. The bank curtailed loan growth to just 9% in the October-December period as it grapples with increased borrower indebtedness.

(With inputs from agencies.)