Axis Bank Faces Profit Pressure Amid Strategic Shift

Axis Bank's shares fell over 3% as the company reported a marginal decline in March quarter profit due to increased loan loss provisions and decreased trading income. The CEO stated the focus is on profitability over growth amid challenging conditions, shifting strategic priorities to manage long-term stability.

Shares of Axis Bank took a hit, closing over 3% lower following a reported decline in its March quarter profits. This drop came as a response to the private lender's unexpected financial results.

The stock settled at Rs 1,165.30 on the BSE, sinking by 3.48%, with an intraday low of Rs 1,145.75. It mirrored similar trends on the NSE, reflecting broader market anxieties.

This financial dip was attributed to a whopping 64% increase in loan loss provisions and an 83% tumble in trading income. Axis Bank's CEO, Amitabh Chaudhry, revealed a strategic pivot towards prioritizing profitability over growth, aiming for long-term resilience in a tough environment.

(With inputs from agencies.)