Axis Bank's first quarter (April-June) earnings disappointed the street on all counts with the profit falling 21.4 percent to Rs 1,555.5 crore on yearly basis, impacted by sharp surge in provisions. However, it was supported by other income and operating profit.
Net interest income, the difference between interest earned and interest expended, grew by 11.4 percent to Rs 4,516.92 crore in the quarter ended June 2016 compared with Rs 4,056.23 crore in same period last fiscal.
The bank said net advances grew 21 percent YoY, led by retail, which grew 24 percent YoY and followed by corporate credit which grew 21 percent YoY.
Net profit was estimated at Rs 1,933.4 crore and net interest income at Rs 4,582.4 crore for the quarter, according to average of estimates of analysts
Axis Bank said the cumulative value of net restructured assets at the end of June 2016 stood at Rs 7,363 crore, constituting 1.99 percent of net customer assets, compared to Rs 8,072 crore, constituting 2.25 percent of net customer assets at the end of March 2016.
The scrip of Axis Bank closed at Rs 537.55, down 0.13 percent ahead of earnings that announced after market hours. In fact, the stock fell 5.7 percent in last four consecutive sessions.