Axis Bank shares surged more than 8 per cent on Wednesday, a day after the country's fourth largest private sector lender by market value reported its earnings for the April-June period. The Axis Bank stock touched the Rs 482.85 apiece mark on the BSE, marking a gain of 8.21 per cent over its previous close of Rs 446.20. Axis Bank shares were the top percentage gainers on both benchmark indices - S&P BSE Sensex and NSE Nifty 50 - in morning deals. (Track Axis Bank Shares Here)
In a regulatory filing after market hours on Tuesday, Axis Bank said its net profit stood at Rs 1,112.17 crore in the quarter ended June 30, Rs 1,626 crore when adjusted for accounting policy changes and net interest income reserves.
Axis Bank's unadjusted net profit declined 18.82 per cent compared to the corresponding period a year ago. Net interest income (NII) - or the difference between interest earned and interest expended - rose 19.54 per cent to Rs 6,985.31 crore.
Its total interest income rose 8.42 per cent to Rs 16,538.89 crore.
In a statement, Axis Bank said COVID-19 has affected the world economy including India, causing volatility in financial markets and hampering economic activities.
Axis Bank's asset quality improved in the April-June period, with gross non-performing assets - or bad loans - as a percentage of total loans at 4.72 per cent. Gross NPAs had stood at 4.86 per cent in the January-March period, and 5.25 per cent in the quarter ended June 30, 2019.
It also said the extent to which COVID-19 will impact its operations and asset quality will depend on future developments, "which are highly uncertain", it said.
At 10:17 am, Axis Bank shares traded 4.33 per cent higher at Rs 465.50 apiece on the bourse, outperforming the benchmark Sensex index which was up 0.25 per cent.