New Delhi: Shares of Axis Bank on Tuesday fell nearly 4% after the private lender reported 46% fall in net profit for April-June quarter.
Axis Bank stock dropped 3.23% to settle at ₹550.10 on BSE. During the day, it went down by 3.59% to ₹548. At NSE, shares of the company fell 3.76% to close at ₹548.20.
The stock was the worst hit among the blue chips on both the key indices. The company’s market valuation diminished by ₹4,708.84 crore to ₹1,41,265.16 crore.
On the equity volume front, 9.43 lakh shares of the company were traded on BSE and over 2 crore shares changed hands at NSE during the day.
Axis bank yesterday reported 46% fall in net profit to ₹701.09 crore for June quarter due to increase in provisioning for bad loans. The bank had registered a net profit of ₹1,306 crore in the June quarter of 2017-18.
The lender’s asset quality worsened as gross non-performing assets (NPAs) rose to 6.52% as on 30 June of this year, from 5.03% on 30 June 2017. Likewise, net NPAs or bad loans increased to 3.09% of advances furnished by June-end from 2.30% a year ago.
The provisions and contingencies of the bank increased to ₹3,337.70 crore as compared to ₹2,341.93 crore in the same quarter of the previous year.