Axis Bank Shares Plunge 6% After Weak Earnings
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.

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.
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
Read More On:
DISCLAIMER - This article is from a syndicated feed. The original source is responsible for accuracy, views & content ownership. Views expressed may not reflect those of rediff.com India Limited.
You May Like To Read
TODAY'S MOST TRADED COMPANIES
- Company Name
- Price
- Volume
- Vodafone Idea L
- 9.12 ( -3.70)
- 28487876
- Srestha Finvest
- 0.65 ( -5.80)
- 17244407
- Murae Organisor
- 1.85 (+ 4.52)
- 16017942
- Quadrant Televenture
- 0.52 (+ 4.00)
- 15423224
- Sunshine Capital
- 0.86 ( -4.44)
- 12894409
MORE NEWS

Coffee Day Enterprises Negotiating Settlement...
Coffee Day Enterprises is negotiating a settlement with IDBI Trusteeship Services in...

India Steel Industry Worried Over US Tariffs
The Indian Steel Association expresses deep concern over the US decision to impose...

Bata India Q3 Profit Up 1.2% to Rs 59 cr -...
Bata India reported a 1.2% rise in Q3 net profit to Rs 58.7 crore, driven by volume-led...