New Delhi: Shares of Axis Bank on Tuesday fell by 2.5 per cent after the private lender reported a 46 per cent drop in net profit for April-June quarter.
The bank's scrip declined 2.19 per cent to Rs 556 on the BSE. On the NSE, shares of the company dipped 2.48 per cent to Rs 555.50. Axis bank yesterday reported a 46 per cent drop in net profit to Rs 701.09 crore for the April-June quarter due to increase in provisioning for the bad loans.
The bank had registered a net profit of Rs 1,306 crore in the June quarter of 2017-18. The lender's asset quality worsened as gross non-performing assets (NPAs) rose to 6.52 per cent as on June 30 of this year, from 5.03 per cent on June 30, 2017.
Likewise, net NPAs or bad loans increased to 3.09 per cent of advances furnished by June-end from 2.30 per cent a year earlier. The provisions and contingencies of the bank increased to Rs 3,337.70 crore as compared to Rs 2,341.93 crore in the same quarter of the previous year.