Axis Bank share price falls nearly 7% after Q1 earnings fail to meet expectations

Axis Bank share price fell in the early trade on Wednesday despite decent earning figures as the bank failed to meet market estimates due to higher provisioning and slippages.

The bank submitted its earnings report yesterday, registering 95% year-on-year growth in its net profit to Rs 1,370 crore for the first quarter ended June 30, 2019, against Rs 701 crore booked in the same quarter last year, driven by a rise in net interest income, other income and operating profit.

The share price of the private bank, however, has not responded well to the result outcome. By Tuesday's closing session, shares of Axis Bank traded lower at Rs 706.55 apiece, registering 1.82% fall on the BSE platform.

The share price of the country's third-largest private lender created a gap-down chart pattern in the early trade on Wednesday and fell 1.77%  on the opening bell to Rs 694. the stock later slipped 6.92% to the day's low of Rs 657.65 on BSE. Axis Bank stock has fallen over 7 % in the last 3 straight days and currently trades lower than 5, 20, 50, 100 and 200-day moving average.

As on June 30, 2019, the bank's gross NPA stood at Rs 29,405 crore and net NPA stood at Rs 11,037 crore. Provisions and contingencies of the Axis Bank increased by 14.3% YoY and 41% over the previous quarter to Rs 3,814.6 crore. Gross slippages increased to Rs 4,798 crore during June quarter 2019, against Rs 4,337 crore in the corresponding period of the last fiscal and Rs 3,012 crore in March quarter.

As of 11:20 am, Axis Bank stock trades at Rs 679 on BSE and Rs 679.40 apiece on NSE.

Edited by Rupa Burman Roy

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