Shares in Axis Bank surged a huge 5 per cent, after the company reported better than expected net profits.

The shares were last trading at Rs 408, up 5 per cent over Wednesday's close. Good performance by Axis Bank also boosted the share price of other private sector lenders like ICICI Bank.

However, the non performing assets of the bank also deteriorated, in line with estimates. The non performing assets of the bank rose to 1.68 per cent of the loan book, which was higher from 1.34 per cent in the quarter ended December 2014 and higher than 1.38 per cent the bank reported in September 2015.

Shares of most banking stocks have been falling sharply on worries over deterioration in asset quality. On Wednesday, shares of ICICI Bank, State Bank of India, Canara Bank, Union Bank, PNB and Bank of Baroda all plunged to new 52-week lows.

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