Axis Bank shares plunge over 3% after earnings announcement

New Delhi: Shares of Axis Bank on Friday ended more than 3 per cent lower after the country's third largest private sector lender reported a decline in the March quarter profit.

The stock declined 3.48 per cent to settle at Rs 1,165.30 apiece on the BSE. During the day, it dropped 5 per cent to Rs 1,145.75.

On the NSE, it went lower by 3.46 per cent to Rs 1,165.30 per share.

The company's market valuation eroded by Rs 12,971.93 crore to Rs 3,60,973.43 crore.

Wiping out all early gains, the 30-share BSE barometer tanked 588.90 points or 0.74 per cent to settle at 79,212.53. Falling for the second day, the NSE Nifty tumbled 207.35 points or 0.86 per cent to 24,039.35.

Axis Bank on Thursday reported a marginal decline in the March quarter profit to Rs 7,117 crore from Rs 7,130 crore in the year-ago period.

A 64 per cent rise in loan loss provisions and a steep fall in the trading income were the primary reasons for the decline in the bottom line, along with a shift in the bank's strategies.

Its Chief Executive Officer and Managing Director Amitabh Chaudhry said it chose to focus on profitability over growth in FY25, given the difficult environment.

Overall provisions moved up to Rs 1,359 crore as against Rs 1,185 crore in the year-ago period, but it was a 64 per cent rise in loan loss provisions at Rs 1,369 crore, which hurt the profits.

Trading income dropped 83 per cent to Rs 173 crore from Rs 1,021 crore in the quarter-ago period.