Packing batteries with more punch
Indian researchers are working on cells that can store more energy, last longer
Axis Bank Ltd, the fourth-biggest bank by assets, fell as much as 7 percent to ₹657.8 rupees, the biggest daily percent loss since September 21, 2018.
The bank had posted June-quarter profit of ₹1,370 crore ($198.95 million), missing the estimates of ₹1,917 crore.
The first quarter-profit after tax was below consensus estimates on account of higher-than-expected provisions, says Citi. It had also reduced the price target PT to ₹900 from ₹980.
Read also: Higher provisioning weighs on earnings of Axis Bank
The provisions and contingencies increased 14.3 percent to ₹3,815 crore , while gross slippages rose 11 percent to ₹47.98 crore. Axis Bank executive also said domestic growth remains weak, as automobile and capex growth are soft.
According to Morgan Stanley, the slippages in corporate and retail were higher than expected but should be lower in the second quarter.
The Jefferies has cut the price target to ₹885 from ₹910.
Up to the last close, the stock had risen 15 percent this year, while ICICI Bank which posted Q1 profit on Saturday, is up 18 percent.
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