India's Axis Bank slumps as first-quarter results disappoint
The stock was the top loser on Nifty Bank (.NSEBANK), opens new tab and Nifty Private Bank (.NIFPVTBNK), opens new tab, which were trading 0.4% and 0.9% lower, respectively.
It also fell the most on benchmark Nifty 50 (.NSEI), opens new tab, which was trading flat.
India's fourth-largest private lender by market value reported a surprise lower quarterly profit drop on Thursday, as its bad loans surged after a one-time industry benchmarking exercise. Its net interest margin also contracted to 3.8% from 4.05%.
The bank's new asset recognition norms weighed on asset quality, with high credit costs adversely impacting the profit, BOBCaps analysts said.
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