Axis Bank shares tumble over 5% after earnings announcement

Shares of Axis Bank tumbled over five per cent in early trade on Friday a day after the company reported a 49.77 per cent jump in its consolidated net profit for the March quarter.

The stock tanked 5.23 per cent to Rs 739.10 on the BSE.

At the NSE, it tumbled 5.21 per cent to Rs 739.10 apiece.

Axis Bank on Thursday reported 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, as against 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 four per cent due to weaker margins although PAT was at Rs 41.2 bn driven by lower provisions (due to stronger recoveries)," according to Gaurav Jani- Research Analyst at Prabhudas Lilladher.

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