Axis Bank Slides 3% Even After Profit Rose 94% To Rs 2,160 Crore In June Quarter

Share price of Axis Bank declined more than three per cent on Tuesday, July 27, a day after the bank announced its April-June quarter results for the financial year 2021-22. On Tuesday, Axis Bank opened on the BSE at Rs 752.50, inching to an intra day high of Rs 756.10 and an intra day low of Rs 729.50, in the trading session so far. Axis Bank reported a net profit of Rs 2,160.15 crore on a standalone basis in the first quarter of the current fiscal, compared to Rs 1,112 crore in the same quarter last year, marking a growth of 94.2 per cent year-on-year.

Axis Bank's net interest income - the difference between interest earned and interest expended, increased 11.1 per cent to Rs 7,760.27 crore in the June quarter, compared to Rs 6,985.31 crore in the corresponding period last year.

The country's fourth-largest private sector bank by market value reported a total income of Rs 19,591.63 crore in the June quarter, rising 2.94 per cent year-on-year. Axis Bank's gross non-performing assets (GNPAs) and net NPA levels were 3.85 per cent and 1.20 per cent respectively by the end of June 2021.

Net slippages in NPAs (before write-offs) for the June quarter was Rs 3,976 crore, compared to Rs 1,822 crores in the preceding January-March quarter of fiscal 2020-21, and net slippages of Rs 1,610 crores in the year-ago period.

Emkay Global Financial Services has given a 'Buy' rating for the bank and maintained a target price of Rs 960. ''The bank has undergone a major transformational journey, fortified the balance sheet, and revved up the digital banking platform. We believe it is now ready to accelerate growth and deliver a better return ratio. Retain Buy with a TP of Rs 960,'' said Emkay Global in its report.

On the NSE, Axis Bank opened at Rs 750.50, witnessing an intra day high of Rs 756 and an intra day low of Rs 729.10. It was last trading 3.31 per cent lower at Rs 731.25 on the NSE.

Shares of Axis Bank were last trading 3.40 per cent lower at Rs 730.45 on the BSE.