Mumbai: Axis Bank’s scrip today fell by nearly 5 per cent after the company’s March quarter earnings disappointed the Street with a profit decline. Aft r a weak opening, the stock further slipped 4.67 per cent to Rs 458 on BSE.
On NSE, it declined 4.61 per cent to Rs 458.05. Axis Bank, the third-largest private lender, yesterday negatively surprised markets with a 1 per cent drop in March quarter profit at Rs 2,154 crore on higher provisions and set aside money in a buffer expecting deterioration in asset quality in future.
The bank had reported a net profit of Rs 2,180.59 crore in the January-March quarter of 2014-15. For the full year, the bank reported a post-tax net profit of Rs 8,349 crore, up 12 per cent.
On the asset quality front, the bank witnessed fresh slippages of Rs 1,474 crore as against the Rs 2,082 crore in the third quarter, when it recognised maximum stress after asset quality review as mandated by RBI.
Total slippages in 2015-16 touched Rs 7,345 crore, but the bank management declined to give a guidance on the same in 2016-17. The gross NPA ratio was almost stable at 1.68 per cent, while during the quarter, it sold assets of Rs 349 crore to asset reconstruction companies for Rs 110 crore.
In a note, brokerage Emkay Global said the numbers are below its estimate, primarily due to lower other income and higher operating expenses and prudential provisions.