Axis Bank stocks down nearly 5% after lacklustre Q4 show
The third-largest private sector lender, on Tuesday negatively surprised markets with a 1% drop in March quarter profit at Rs 2,154 crore on higher provisions and set aside money in a buffer expecting deterioration in asset quality in future.
Axis Bank's scrip on Wednesday fell by nearly 5% after the company's March quarter earnings disappointed the street with a profit decline.
After a weak opening, the company's stock further slipped 4.67% to Rs 458.00 on the Bombay Stock Exchange (BSE).
On the National Stock Exchange (NSE), it declined 4.61% to Rs 458.05.
Axis Bank, the third-largest private lender, on Tuesday negatively surprised markets with a 1% drop in March quarter profit at Rs 2,154 crore on higher provisions and set aside money in a buffer expecting deterioration in asset quality in future.
The bank had reported a net profit of Rs 2,180.59 crore in the January-March quarter of 2014-15.
For the full year, the bank reported a post-tax net profit of Rs 8,349 crore, up 12%.
On the asset quality front, the bank witnessed fresh slippages of Rs 1,474 crore as against the Rs 2,082 crore in the third quarter, when it recognised maximum stress after asset quality review as mandated by the Reserve Bank of India (RBI).
Total slippages in 2015-16 touched Rs 7,345 crore, but the bank management declined to give a guidance on the same in 2016-17. The gross non-performing assets (NPAs) ratio was almost stable at 1.68%, while during the quarter, it sold assets of Rs 349 crore to asset reconstruction companies for Rs 110 crore.
In a note, brokerage Emkay Global said the numbers are below its estimate, primarily due to lower other income and higher operating expenses and prudential provisions.
At 14:51 hours, the shares of Axis Bank were trading down 3.08% or Rs 14.80 to Rs 464.65 per scrip on the BSE.