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Axis Bank Ltd.’s share price went up by 0.12 per cent after the company announced the bank’s quarterly net profit surge to ₹5,797 crore, exhibiting a remarkable turnaround of 201.2 per cent q-o-q and 40.5 per cent y-o-y.
The results depicted strong loan growth across all business segments in Q1 FY24, leading to a notable increase in its quarterly net profit. The bank’s net interest income (NII) reached ₹11,959 crore, showing a growth of 1.8 per cent q-o-q and 27.4 per cent y-o-y. Despite missing market estimates of ₹12,000 crore, the increase in NII indicates the bank’s resilient performance.
Shreyansh Shah, a research analyst at StoxBox, said, “Private lender Axis Bank reported a decent performance in Q1FY24 across all the parameters barring the high provisioning. Also, we observed that the bank had some elevated operational costs on account of the amortization of goodwill which was due to the acquisition of Citi’s consumer business which shall continue throughout FY24. However, we’ll wait in the coming quarters to see whether the acquisition process is done smoothly and does not affect the bank’s asset quality and bottom line.”
The bank’s share price went up to ₹981 at 10.30 a.m. on BSE.
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