Private sector lender Axis Bank witnessed a 6% dip as it released its financial results for the October-December quarter, falling short of market expectations. The bank faced challenges including margin pressure, a high cost of funds, slow deposit growth, and a net profit impact due to AIF provisioning.
In Q3FY24, Axis Bank reported a modest 4% year-on-year growth in net profit, reaching Rs 6,071 crore, primarily affected by provisioning related to AIF. Despite this, the net interest income (NII) exhibited a positive trend, growing by 9% year-on-year to Rs 12,532 crore, driven by robust credit growth.
Brokerages responded with ‘buy’ recommendations for Axis Bank’s stock, expressing optimism about potential improvements in loan growth and highlighting the stock’s appealing valuations.
As of 9:48 am, Axis Bank shares were trading 3.21% lower at ₹1,054.25, indicating a cautious sentiment among investors as they weigh the bank’s performance against the backdrop of challenging market conditions.
