Axis Bank shares jump over 8 per cent as asset quality improves
There was an uptick in provisions for bad loans and contingencies at Rs 4,416.42 crore for April-June, 2020-21 as against Rs 3,814.58 crore in the year-ago period.
NEW DELHI: Shares of Axis Bank on Wednesday jumped over 8 per cent after the company’s asset quality showed improvement in the June quarter.
The stock gained 8.21 per cent to Rs 482.85 on the BSE. At the NSE, it zoomed 8.42 per cent to Rs 483.80. It was the biggest gainer on both BSE Sensex and NSE Nifty. Axis Bank on Tuesday reported 19 per cent decline in standalone net profit at Rs 1,112 crore for June quarter of the current financial year.
The third largest private sector bank posted a net profit of Rs 1,370 crore for April-June, 2019-20. Total income was almost flat at Rs 19,125.57 crore during the quarter under review, Axis Bank said in a regulatory filing.
There was an uptick in provisions for bad loans and contingencies at Rs 4,416.42 crore for April-June, 2020-21 as against Rs 3,814.58 crore in the year-ago period.
However, the asset quality showed improvement with gross non-performing assets (NPAs) declining at 4.72 per cent of gross advances as on June 30, 2020, from 5.25 per cent as on June-end last year.
Net NPAs also fell to 1.23 per cent, from 2.04 per cent a year ago. On consolidated basis, the net profit of the bank declined by 12 per cent to Rs 1,108.10 crore in the first quarter, as against Rs 1,262.98 crore in the same period a year ago.
Total income stood at Rs 19,461.77 crore, as against Rs 19,409.09 crore
-PTI
