Shares in Axis Bank fell as much as 7 per cent, after the company's net profits plunged and the bank reported a dismal set of results.
The net profits of Axis Bank plunged as much as 83 per cent to Rs 319 crores from Rs 1915 crores, during the last year. Most analyst had predicted the net profits to be in the range of Rs 1,600 crores and the steep drop came as a surprise.
"Loans outstanding on the watchlist reduced 32 percent over the previous quarter and stood at Rs 13,789 crore. The reduction primarily represents slippages to NPAs amounting to Rs 7,288 crore, which comprised 89 percent of the total corporate credit slippages," the company said in a release to the exchanges.
What was worrying was the sharp gains in the gross non performing assets, which grew to a staggering 4.17, from just 2.14 per cent, which left the markets a little worried.