Shares of Axis Bank fell nearly 3% in early trade on Friday after the company reported a consolidated loss of Rs 5,361 crore for the January-March period.
The stock fell 2.65% to Rs 857.65 on the BSE. On the NSE, it fell 2.41% to Rs 860.10. In morning trade, the stock was the biggest laggard of the BSE Sensex and NSE Nifty.
Axis Bank reported a consolidated loss of Rs 5,361 crore for January-March. The company reported a net profit of Rs 4,417 crore a year ago, driven by Citigroup’s acquisition spend of Rs 12,490 crore.
On a standalone basis, the third largest private sector lender reported a loss of Rs 5,728 crore. Net profit was Rs 4,117 crore in the same period last year and Rs 5,853 crore in the previous quarter.
The bank’s core net interest income rose 33% to Rs 11,742 crore, boosted by a 0.73% rise in net interest margin to 4.22% and more than 20% growth in advances. Other income rose 16% to Rs 4,895 crore in the quarter.
Its MD and CEO Amitabh Chaudhry told reporters that the impact of the acquisition of Citigroup’s retail business is a one-time one. If this factor had been excluded, net profit would have increased by more than 61% year-on-year.