Axis Bank falls on Q4 loss

Axis Bank is among the top five losers on the BSE since the opening bell on the back of its poor show for Q4FY20. Most analysts had predicted the Bank to post a double-digit decline in net profit but it shocked everyone with a net loss of Rs.1388 crore on the back of a huge provisioning – a 185% increase to Rs.7730 crore as at 31st March 2020 v/s Rs.2711 crore (YoY). The bank also made additional provisioning of Rs.3,000 crore towards Covid-19 during the quarter.

Its Net Interest Income (NII) was up 19% (YoY) at Rs.6808 crore while Net interest margin (NIM) was at 3.55%.

In terms of asset quality, Gross NPA was at 4.86% v/s 5% (QoQ).

The Bank added fresh bad loans worth Rs.3,920 crore during Q4FY20 v/s 6214 (QoQ) and Rs.3012 crore (YoY).

The stock, which had closed yesterday at Rs.455.55, opened lower at Rs.432 and went down to an intraday low at Rs.427.50.