New Delhi: Axis Bank's shares dropped by almost 7 per cent in morning trading on Thursday due to disappointing June quarter earnings. The stock plummeted by 6.75 percent to Rs 1,156 on the BSE. It dropped by 6.75 percent to Rs 1,155 on the NSE. The stock was the top underperformer among the companies in Sensex and Nifty.
Axis Bank's consolidated net profit for the June quarter rose by 5.66 per cent to Rs 6,436 crore, despite facing challenges related to the quality of assets. Alone, the third largest private sector bank saw a 4 per cent increase in net profit to Rs 6,035 crore.
During the quarter, the net interest margin (NIM) remained steady at 4.05 per cent, with core net interest income increasing by 12 per cent to Rs 13,448 crore due to a 14 per cent growth in advances. During the quarter, the additional revenue increased by 14 percent to reach Rs 5,783 crore.
The bank experienced an increase in gross slippages to Rs 4,793 crore in the quarter, up from Rs 3,471 crore in the previous quarter and Rs 3,990 crore in the same period last year. Stoxbox analysts described the earnings as "subdued" and noted high provisions.
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