The shares of blue-chip private sector lenders Axis Bank and HDFC Bank traded sharply lower on Monday, weighing in subdued sentiment in the stock market.
The decline in these banking stocks was driven after they reported earnings for the April-June quarter.
Axis Bank Share Price: In early trade, Axis Bank shares tanked 6 per cent to Rs 1,249.05 on the BSE. While at the NSE, it declined 5.97 per cent to Rs 1,249.10.
HDFC Bank Share Price: In early trade, the blue-chip stock declined 5.14 per cent to Rs 777.50 on the BSE, while it tanked 5.13 per cent to Rs 777.50 on NSE.
Axis Bank Q1 Results
The Q1 earnings failed to cheer investors. The bank reported a 22.23 per cent increase in consolidated profit to Rs 7,632.31 crore in the June quarter, helped by a reduction in provisions.
The third-largest private sector lender’s net profit on a standalone basis rose 23 per cent to Rs 7,114 crore.
Its core net interest income rose 8 per cent to Rs 14,646 crore, while advances grew 19 per cent, and net interest margin declined to 3.46 per cent from 3.73 per cent in the same quarter and the same period a year ago.
HDFC Bank Q1 Earnings Report
The bank’s standalone profit rose 5 per cent to Rs 19,060 crore in the June quarter. The country’s largest private sector lender had posted a net profit of Rs 18,155 crore in the same period a year ago.
However, HDFC Bank said in a regulatory filing that the bank’s total income in the quarter declined to Rs 92,184 crore from Rs 99,200 crore in the same period a year ago.
The lender’s interest income increased to Rs 79,363 crore from Rs 77,470 crore in the same quarter a year ago. Operating profit declined to Rs 28,169 crore from Rs 35,734 crore in the same period a year ago.
It said net interest income increased 7 per cent to ₹33,530 crore in the June quarter from Rs 31,440 crore.
ICICI Bank Stock traded Higher
The private sector lender stock went up by 2.63 per cent to Rs 1,479.90 on the BSE. At the NSE, the banking shares climbed 2.47 per cent to Rs 1,480.