Axis Bank stocks plunge over 8%; m-cap erodes by Rs 10,133 cr post Q2 numbers

Shares of Axis Bank slumped over 8 percent Wednesday after the company's July-September quarter net plunged by 83 percent.

New Delhi: Axis Bank shares slumped 8 percent Wednesday, eroding Rs 10,133 crore from its market valuation, after the company reported an 83 percent plunge in its September quarter net profit.

The stock tanked 8.04 percent to close at Rs 486.50 on BSE. During the day, it plunged 8.42 percent to Rs 484.50.

At NSE, shares of the company plummeted 7.85 percent to end at Rs 487.55.

Following the sharp decline in the stock, the company's market valuation tumbled by Rs 10,132.93 crore to Rs 1,16,297.07 crore.

On the volumes front, 26.99 lakh shares of the company were traded on BSE and over 3 crore shares changed hands at NSE during the day.

The stock was the worst performer among the blue-chips on both Sensex and Nifty.

"If recent gains in banks rode on hopes that we were at the end of the NPA cycle, Axis numbers have forced a rethink on the same.

"Unsurprisingly, banks led the fall today, and with more banks about to announce Q2 figures, investors are waiting to see if Axis numbers can be dismissed as a one off case," said Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services Ltd.

Country's third biggest private sector lender Axis Bank's September quarter net plunged by 83 percent to Rs 319 crore due to a spike in provisions as its asset quality deteriorated.

The Shikha Sharma-led bank had posted a post-tax profit of Rs 1,915.64 crore in the July-September period last year.

Total income increased to Rs 13,698.7 crore in the period under review from Rs 12,001 crore earlier.

Warning of further stress in the future, its Chief Financial Officer Jairam Sridharan had told reporters yesterday that the pain was primarily on account of a larger proportion of the assets placed under a 'watch-list' slipping into the NPA category.

The 30-share Sensex ended with a loss of 254.91 points at 27,836.51.