Axis Bank Shares Plunge 5% After Earnings Miss
By Rediff Money Desk, New Delhi Jan 17, 2025 16:33
Axis Bank shares tumbled nearly 5% after its December quarter earnings failed to meet market expectations. The bank's net profit grew 4%, but asset quality pressures from the retail segment impacted results.

Photograph: Danish Siddiqui /Reuters
New Delhi, Jan 17 (PTI) Shares of Axis Bank tanked nearly 5 per cent on Friday after the company's December quarter earnings failed to meet market expectations.
The stock declined 4.71 per cent to settle at Rs 991.25 on the BSE. During the day, it tumbled 6.32 per cent to hit a 52-week low of Rs 974.45.
At the NSE, it ended 4.43 per cent lower at Rs 992. During the day, the stock tumbled 6.10 per cent to Rs 974.60 -- the 52-week low.
The company's market valuation diminished by Rs 15,136.3 crore to Rs 3,06,823.44 crore.
The 30-share benchmark declined 423.49 points or 0.55 per cent to settle at 76,619.33. The NSE Nifty dropped 108.60 points or 0.47 per cent to 23,203.20.
Axis Bank reported a 4 per cent growth in its December quarter net profit to Rs 6,304 crore, impacted by asset quality pressures from the retail segment.
Executives at the country's third largest private sector lender said the bank sees a degree of indebtedness in certain segments of the borrowers, which led to taking a deliberate call on slowing loan growth to 9 per cent in the October-December period.
The bank, however, does not have any clarity on how long the ongoing challenges will last, an executive said, adding that the tepid GDP growth is among the factors in the macro environment having a bearing on repayments.
"Axis Bank saw a weak quarter as loan growth, fees and asset quality were a miss," according to a report by brokerage firm Prabhudas Lilladher.
The core net interest income grew by 9 per cent to Rs 13,483 crore and the net interest margin declined by 8 basis points on year to 3.93 per cent.
"Axis Bank reported a muted quarter with PAT at INR 63bn (+3.8% YoY, -8.9% QoQ) led by an inch up in credit costs (0.89% vs 0.67% QoQ)," according to report by JM Financial Institutional Securities.
Its gross slippages came at Rs 5,432 crore, of which Rs 4,923 crore came from the retail segments including unsecured lending and agri loans.
The stock declined 4.71 per cent to settle at Rs 991.25 on the BSE. During the day, it tumbled 6.32 per cent to hit a 52-week low of Rs 974.45.
At the NSE, it ended 4.43 per cent lower at Rs 992. During the day, the stock tumbled 6.10 per cent to Rs 974.60 -- the 52-week low.
The company's market valuation diminished by Rs 15,136.3 crore to Rs 3,06,823.44 crore.
The 30-share benchmark declined 423.49 points or 0.55 per cent to settle at 76,619.33. The NSE Nifty dropped 108.60 points or 0.47 per cent to 23,203.20.
Axis Bank reported a 4 per cent growth in its December quarter net profit to Rs 6,304 crore, impacted by asset quality pressures from the retail segment.
Executives at the country's third largest private sector lender said the bank sees a degree of indebtedness in certain segments of the borrowers, which led to taking a deliberate call on slowing loan growth to 9 per cent in the October-December period.
The bank, however, does not have any clarity on how long the ongoing challenges will last, an executive said, adding that the tepid GDP growth is among the factors in the macro environment having a bearing on repayments.
"Axis Bank saw a weak quarter as loan growth, fees and asset quality were a miss," according to a report by brokerage firm Prabhudas Lilladher.
The core net interest income grew by 9 per cent to Rs 13,483 crore and the net interest margin declined by 8 basis points on year to 3.93 per cent.
"Axis Bank reported a muted quarter with PAT at INR 63bn (+3.8% YoY, -8.9% QoQ) led by an inch up in credit costs (0.89% vs 0.67% QoQ)," according to report by JM Financial Institutional Securities.
Its gross slippages came at Rs 5,432 crore, of which Rs 4,923 crore came from the retail segments including unsecured lending and agri loans.
Source: PTI
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