New Delhi, Apr 29 (PTI) Shares of Axis Bank tumbled nearly 6.5 per cent on Friday despite the lender reporting a nearly 50 per cent jump in quarterly net profit.
The stock tanked 6.57 per cent to settle at Rs 728.70 apiece on the BSE. During the day, it declined 7.04 per cent to Rs 725.
On the NSE, it tumbled 6.38 per cent to end at Rs 730 apiece.
The company’s market valuation also went down by Rs 15,679.62 crore to Rs 2,23,744.38 crore on the BSE.
In traded volume terms, 9.87 lakh shares were traded on the BSE and over 3.44 crore shares on the NSE during the day.
It was the biggest laggard on both the Sensex and Nifty.
On Thursday, Axis Bank posted a 49.77 per cent jump in its consolidated net profit for the March quarter at Rs 4,434 crore, helped by a steep reduction in money set aside for bad debts.
On a standalone basis, the third-largest private sector lender reported a 54 per cent jump in its post-tax net at Rs 4,118 crore. For the fiscal year 2021-22, it reported a 98 per cent jump in its post-tax profit at Rs 13,025 crore.
The stock of gross non-performing assets declined to 2.82 per cent from 3.70 per cent in the year-ago period, while the gross slippages came at Rs 3,981 crore. It was at Rs 4,147 crore in the preceding December quarter and Rs 5,285 crore in the year-ago period.
“Axis Bank earnings were mixed as operating income missed estimates by 4 per cent due to weaker margins although PAT was at Rs 41.2 bn driven by lower provisions (due to stronger recoveries),” Gaurav Jani, Research Analyst at Prabhudas Lilladher, said. PTI SUM SHW SHW