Axis Bank shares plunge 6.5 per cent after earnings

NEW DELHI: Shares of Axis Bank on Wednesday tumbled 6.5 per cent even after the company reported a net profit of Rs 3,382.78 crore on a consolidated basis for the September quarter.

The stock plunged 6.52 per cent to close at Rs 787.35 on the BSE.

During the day, it tanked 6.70 per cent to Rs 785.80.

On the National Stock Exchange (NSE), it tumbled 6.46 per cent to close at Rs 787.50.

Axis Bank was the biggest laggard among the Sensex pack of companies.

In traded volume terms, 10.50 lakh shares were traded on the BSE and over 3.96 crore shares on the NSE during the day.

Axis Bank on Tuesday reported a net profit of Rs 3,382.78 crore on a consolidated basis for the September 2021 quarter, driven by lower loan provisions as asset quality improved.

The third-largest private sector lender reported a net profit of Rs 3,133.32 crore for the July-September period on a standalone basis, which is its highest-ever for any quarter.

Its Managing Director and Chief Executive Officer Amitabh Chaudhry exuded confidence that the second half will be better as the consumer and business confidence is returning back on the back of vaccinations and asserted that all the legacy asset quality issues are behind for it now.

The net slippages declined 82 per cent when compared with the preceding June 2021 quarter at Rs 707 crore, and helped in the gross non-performing assets ratio improving to 3.53 per cent as against 4.13 per cent in the year-ago period.

The gross slippages during the quarter were Rs 5,464 crore.