Axis Bank shares tank 6 pc after earnings announcement

New Delhi, Jul 20 (PTI) Shares of Axis Bank tumbled 6 per cent on Monday as its June quarter numbers failed to cheer investors.

The stock tanked 6 per cent to Rs 1,249.05 on the BSE.

At the NSE, it declined 5.97 per cent to Rs 1,249.10.

Axis Bank on Saturday reported a 22.23 per cent jump in consolidated profit for the June quarter at Rs 7,632.31 crore, helped by a narrowing in provisions.

On a standalone basis, the third largest private sector lender’s net profit jumped 23 per cent to Rs 7,114 crore.

Its core net interest income grew 8 per cent to Rs 14,646 crore on the back of a 19 per cent jump in advances and a narrowing in the net interest margin to 3.46 per cent from the 3.80 per cent in the year-ago period and quarter-ago period’s 3.73 per cent.

Its Chief Executive and Managing Director Amitabh Chaudhry said the NIM (Net Interest Margin) is at the bottom in the current cycle, hinting that it will rise from here on but refrained from giving any aspirational number for the near future.

He said the FCNR(B) scheme, under which the banks are expected to get deposits from the diaspora will also influence the NIM number going forward as it will bring additional liquidity that was not budgeted for, and can help from a paydown of high-cost liabilities.

The Gross Non-performing Assets (GNPA) ratio inched up to 1.28 per cent on-quarter as compared with March-end’s 1.23 per cent. PTI SUM SUM DR DR