(Corrects third paragraph to say Axis Bank is India’s third largest private bank, not fourth largest)
BENGALURU (Reuters) -Axis Bank’s shares fell about 5% on Thursday, a day after it reported a smaller-than-expected first-quarter profit on higher provisions for bad loans.
The stock hit its lowest since June 14, recording its worst intraday percentage fall since June 4. The bank was also the top percentage loser in the benchmark Nifty 50 index, which was down 0.8%.
India’s third-largest private bank by market capitalisation said the funds kept aside to cover potential bad loans and losses from any unforeseen events rose 97% from a year earlier.
Going forward, in the short term, credit growth is likely to be constrained by deposit growth given the central bank’s increased focus on lowering the credit-deposit ratio, Systematix analysts said in a note.
Axis Bank shares have risen 12.4% year-to-date as of last close, the fifth-most gainer among 12 stocks in the bank index, which is up 6.3%.
(Reporting by Sethuraman NR in Bengaluru; Editing by Janane Venkatraman)
