Axis Bank's Profit Plunge: Strategic Shift Amid Tough Times

Axis Bank shares dropped nearly 5% after reporting a decline in March quarter profits. Pressured by a 64% rise in loan loss provisions and a steep fall in trading income, profits slightly dipped from Rs 7,130 crore to Rs 7,117 crore. The bank focuses on profitability over growth.

On Friday, Axis Bank shares plummeted nearly 5% following the release of its March quarter profit report, which showed a slight decline. The third-largest private lender faced a profit fall from Rs 7,130 crore in the year-ago period to Rs 7,117 crore.

The stock recorded a 4.58% drop to Rs 1,151.95 on the BSE and a 4.55% dip to Rs 1,152.10 on the NSE. This made Axis Bank the biggest laggard among BSE Sensex and NSE Nifty companies during morning trade.

A 64% increase in loan loss provisions, totaling Rs 1,369 crore, along with an 83% drop in trading income to Rs 173 crore, largely contributed to this decline. CEO Amitabh Chaudhry stated the bank is prioritizing profitability over growth amid a challenging environment in FY25.

(With inputs from agencies.)