Axis Bank shares fell nearly 4 per cent on Monday after the lender missed Q1 profit estimates. Axis Bank was the top loser in the Nifty50 index today.
Axis Bank, which reported numbers post market hours on Friday, said net profit fell 21 per cent from a year earlier to Rs 1,556 crore for the three months to June 30, missing analysts' estimate of Rs 1,998 crore.
India's third-biggest private sector lender by assets reported a surge in bad loans in its first quarter, which hit its bottom line. Axis Bank's bad loans rose by Rs 3,638 crore during the quarter, taking its gross bad loans to Rs 9,553 crore, or 2.54 per cent of its total loans as of end-June, compared with 1.67 percent at the end of March.
In April, Axis Bank had said it had prepared "watch list" of about Rs 22,600 crore worth of loans, or 4 per cent of its assets, that could potentially become troubled. It had guided for 60 per cent of those loans to turn sour over the next eight quarters.
That watch list reduced to about Rs 20,300 crore as of end June, Axis Bank said, adding 92 per cent of the corporate loans that turned sour in the June quarter were from that list.
Axis Bank management said it was "not unduly perturbed" with the rise in bad loans, with chief financial officer Jairam Sridharan adding that the rise in bad loans was in line with the bank's previous guidance of potential trouble.
Notably, analysts were not disappointed despite earnings miss, limiting the downside in the stock. Brokerage CLSA maintained its "buy" call on Axis Bank and raised its target to Rs 650, citing healthy CASA (low-cost deposit) growth. Macquarie also retained its "neutral" rating on Axis Bank (target Rs 501), saying the big Q1 earnings miss was driven by provisions.
Axis Bank shares closed flat at Rs 538.10 on the NSE, underperforming the broader Nifty that ended with 1.1 per cent gains.
Axis Bank shares fell nearly 4 per cent on Monday after the lender missed Q1 profit estimates. Axis Bank was the top loser in the Nifty50 index today.
Axis Bank, which reported numbers post market hours on Friday, said net profit fell 21 per cent from a year earlier to Rs 1,556 crore for the three months to June 30, missing analysts' estimate of Rs 1,998 crore.
India's third-biggest private sector lender by assets reported a surge in bad loans in its first quarter, which hit its bottom line. Axis Bank's bad loans rose by Rs 3,638 crore during the quarter, taking its gross bad loans to Rs 9,553 crore, or 2.54 per cent of its total loans as of end-June, compared with 1.67 percent at the end of March.
In April, Axis Bank had said it had prepared "watch list" of about Rs 22,600 crore worth of loans, or 4 per cent of its assets, that could potentially become troubled. It had guided for 60 per cent of those loans to turn sour over the next eight quarters.
That watch list reduced to about Rs 20,300 crore as of end June, Axis Bank said, adding 92 per cent of the corporate loans that turned sour in the June quarter were from that list.
Axis Bank management said it was "not unduly perturbed" with the rise in bad loans, with chief financial officer Jairam Sridharan adding that the rise in bad loans was in line with the bank's previous guidance of potential trouble.
Notably, analysts were not disappointed despite earnings miss, limiting the downside in the stock. Brokerage CLSA maintained its "buy" call on Axis Bank and raised its target to Rs 650, citing healthy CASA (low-cost deposit) growth. Macquarie also retained its "neutral" rating on Axis Bank (target Rs 501), saying the big Q1 earnings miss was driven by provisions.
Axis Bank shares closed flat at Rs 538.10 on the NSE, underperforming the broader Nifty that ended with 1.1 per cent gains.
Axis Bank shares fell nearly 4 per cent on Monday after the lender missed Q1 profit estimates. Axis Bank was the top loser in the Nifty50 index today.
Axis Bank, which reported numbers post market hours on Friday, said net profit fell 21 per cent from a year earlier to Rs 1,556 crore for the three months to June 30, missing analysts' estimate of Rs 1,998 crore.
India's third-biggest private sector lender by assets reported a surge in bad loans in its first quarter, which hit its bottom line. Axis Bank's bad loans rose by Rs 3,638 crore during the quarter, taking its gross bad loans to Rs 9,553 crore, or 2.54 per cent of its total loans as of end-June, compared with 1.67 percent at the end of March.
In April, Axis Bank had said it had prepared "watch list" of about Rs 22,600 crore worth of loans, or 4 per cent of its assets, that could potentially become troubled. It had guided for 60 per cent of those loans to turn sour over the next eight quarters.
That watch list reduced to about Rs 20,300 crore as of end June, Axis Bank said, adding 92 per cent of the corporate loans that turned sour in the June quarter were from that list.
Axis Bank management said it was "not unduly perturbed" with the rise in bad loans, with chief financial officer Jairam Sridharan adding that the rise in bad loans was in line with the bank's previous guidance of potential trouble.
Notably, analysts were not disappointed despite earnings miss, limiting the downside in the stock. Brokerage CLSA maintained its "buy" call on Axis Bank and raised its target to Rs 650, citing healthy CASA (low-cost deposit) growth. Macquarie also retained its "neutral" rating on Axis Bank (target Rs 501), saying the big Q1 earnings miss was driven by provisions.
Axis Bank shares closed flat at Rs 538.10 on the NSE, underperforming the broader Nifty that ended with 1.1 per cent gains.
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