Axis Bank stock tumbles nearly 7% post Q1 earnings

New Delhi: Axis Bank's stock tumbled nearly 7 per cent on Thursday morning trade after the company's June quarter earnings failed to cheer investors.

The stock tanked 6.75 per cent to Rs 1,156 on the BSE.

On the NSE, it slumped 6.75 per cent to Rs 1,155.

The stock emerged as the biggest laggard among the Sensex and Nifty firms.

Axis Bank on Wednesday reported a 5.66 per cent rise in consolidated net profit for the June quarter at Rs 6,436 crore, restricted by challenges on the asset quality front.

On a standalone basis, the third biggest private sector lender reported a 4 per cent rise in net profit at Rs 6,035 crore.

The core net interest income grew 12 per cent to Rs 13,448 crore during the quarter on the back of the net interest margin (NIM) staying stable at 4.05 per cent and 14 per cent growth in advances. The other income grew 14 per cent to Rs 5,783 crore during the quarter.

The bank witnessed a jump in gross slippages to Rs 4,793 crore during the quarter as against Rs 3,471 crore in the March quarter and Rs 3,990 crore in the year-ago period.

Analysts at domestic brokerage Stoxbox said the earnings are "muted" and the provisions are high.