Axis Bank shares gained more than 1 per cent in a weak market although the bank reported a significant decline in net profit in the December 2020 quarter. The shares of Axis Bank soared 2.2 per cent to touch an intra-day high of Rs 646.35 in early trading. At 10;30 am, the shares of Axis Bank were trading at Rs 642.35, higher by 1.70 per cent on the BSE.
Axis Bank, the fourth largest private sector lender by market capitalisation, reported a 36.4 per cent year-on-year (YoY) decline in standalone net profit to Rs 1,117 crore for the quarter ended December 2020 due to higher provisioning for bad loans. The bank had reported a net profit of Rs 1,757 crore in the corresponding period of the previous year.
The bank’s net interest income, which is the difference between interest earned and expended, rose 14 per cent to Rs 7,373 crore, a 36 per cent year-on-year rise. Deposits in the quarter increased by 11 per cent to Rs 6.54 lakh crore.
The BSE Sensex was at 46,917.3, lower by 489.90 points or 0.05 per cent and the NSE Nifty was at 13,822.55, down 144.55 points or 1.03 per cent.