Axis Bank shares jump over 7 percent as asset quality improves
Shares of Axis Bank on Wednesday jumped over 7 per cent after the lender's asset quality showed improvement in the June 2020 quarter. The stock closed 7.36 per cent higher at Rs 479.05 on the BSE. During the day, it gained 8.57 per cent to Rs 484.45.
On the National Stock Exchange (NSE), it zoomed 6.67 per cent to close at Rs 476.
It was the biggest gainer on both the BSE and the NSE.
The company's market capitalisation rose Rs 9,271.09 crore to Rs 1,35,189.09 crore on the BSE.
Axis Bank on Tuesday reported a 19 per cent fall in its standalone net profit to Rs 1,112 crore for the June quarter of the current financial year.
The third-largest private sector bank's net profit had stood at Rs 1,370 crore in April-June 2019.
Its total income was almost flat at Rs 19,125.57 crore during the June 2020 quarter, Axis Bank said in a regulatory filing.
There was an uptick in provisions for bad loans and contingencies at Rs 4,416.42 crore in April-June 2020, compared with Rs 3,814.58 crore in the year-ago period.
However, the asset quality showed improvement with gross non-performing assets (NPAs) declining to 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 a consolidated basis, the bank's net profit declined 12 per cent to Rs 1,108.10 crore in the first quarter, against Rs 1,262.98 crore in the corresponding period a year ago.
Total income stood at Rs 19,461.77 crore, against Rs 19,409.09 crore.
