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Axis Bank Shares Plunge 6% After Weak Earnings

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By Rediff Money Desk, New Delhi   Jan 17, 2025 10:57

Axis Bank shares tumbled nearly 6% on Friday after its December quarter earnings missed expectations. Asset quality pressures from the retail segment impacted the bank's profit growth.
Axis Bank Shares Plunge 6% After Weak Earnings
Photograph: Danish Siddiqui /Reuters
New Delhi, Jan 17 (PTI) Shares of Axis Bank tanked nearly 6 per cent on Friday after the company's December quarter earnings failed to meet market expectations.

The stock declined 5.78 per cent to hit a 52-week low of Rs 980 on the BSE.

At the NSE, it tumbled 5.58 per cent to Rs 980 -- the 52-week low.

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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