Shares of Axis Bank tanked nearly 7 per cent, wiping out Rs 7,933 crore from its market valuation today, after the company reported a sharp 73 per cent decline in December net profit.
The stock plunged 6.86 per cent to end at Rs 450.50 on BSE. During the day, it dropped 7.35 per cent to Rs 448.10.
On NSE, it plummeted 6.83 per cent to close at Rs 450.75.
Led by the decline in the stock, the company’s market valuation fell by Rs 7,933.5 crore to Rs 1,07,737.50 crore.
The stock was the biggest loser among blue—chips on both the Sensex and the Nifty during the day.
On the volume front, 19.26 lakh shares of the company were traded on BSE and over 3 crore shares changed hands at NSE during the day.
“Axis Bank’s results for the quarter were below expectations on account of higher provisions,” Siddharth Purohit, Sr Equity Research Analyst — Banking, Angel Broking said.
Heavy loan losses continued to impact Axis Bank’s profitability, with a 73 per cent decline in December net at Rs 580 crore but the third largest private sector lender said the “peak of the pain” is done with.
The Shikha Sharma—led bank had posted a net profit of Rs 2,175 crore in the year—ago period.
Axis Bank’s portfolio quality deteriorated, with gross non-performing assets (NPAs) rising to 5.22 per cent of gross advances as against 1.68 per cent in the same quarter of the previous fiscal.
Its net non—performing assets also jumped to 2.18 per cent, from the earlier 0.75 per cent.
