Axis Bank Sees Shares Plummet on Disappointing Earnings

Axis Bank shares fell nearly 6% following underwhelming December quarter earnings. The bank's net profit rose by 4% amid retail segment pressures. Executives cite borrower indebtedness and tepid GDP growth impacting repayments. Loan growth slowed, with asset quality and fees missing targets.

Shares of Axis Bank took a significant hit on Friday, falling nearly 6% as the company's December quarter earnings disappointed investors.

The stock reached a 52-week low of Rs 980 on both the BSE and NSE amid concerns over asset quality pressures stemming from the retail segment.

Executives acknowledged the challenges, pointing to indebtedness in certain borrower segments, which prompted a strategic slowdown in loan growth to 9% during the October-December period.

Despite the issues, the bank reported a 4% increase in net profit to Rs 6,304 crore, although asset quality remained a concern, with gross slippages totaling Rs 5,432 crore, largely from retail sectors.

The bank's net interest income rose by 9% to Rs 13,483 crore, although the net interest margin experienced a slight decline.

Amid ongoing macroeconomic challenges, including sluggish GDP growth, the bank remains uncertain about the duration of these financial pressures, impacting overall performance in the quarter.

(With inputs from agencies.)