Axis Bank Shares Slide Nearly 5% After Q4 Earnings Miss
Shares of Axis Bank fell as much as 4.8% on Monday after the lender reported weaker-than-expected fourth-quarter earnings, weighed down by higher provisions and news of a $2 billion equity fundraise. The stock was trading 3.7% lower at ₹1,316 as of 10:27 a.m. IST, reflecting investor concerns over the bank’s near-term profitability outlook.
The private sector lender posted a marginal 0.7% decline in net profit to ₹70.71 billion for the fourth quarter, missing analysts’ estimates of ₹73.16 billion, according to data compiled by London Stock Exchange Group (LSEG). The earnings were impacted by a one-time provision of ₹20 billion set aside for macroeconomic risks, including potential stress arising from geopolitical tensions in West Asia.
Brokerage firm CLSA noted that while the additional provisioning may have unsettled investors, its impact was largely offset by a ₹21 billion tax writeback related to the bank’s acquisition of Citibank’s India consumer business. CLSA added that the provision reflects caution amid global uncertainty and should not be overinterpreted in assessing the bank’s overall financial health.
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