 "Axis’ dismal show could trigger downgrades")
In sharp contrast to the strong show posted by smaller private lenders, Axis Bank failed to deliver on most fronts in December quarter (Q3). Weak loan growth, falling net interest margin, and continued pressure on asset quality led to a 73 per cent year-on-year fall in its net profit for the quarter. Notably, net profit has fallen for the fourth quarter. The sharp five-times jump in trading income to Rs 1,525 crore on falling yields came to the rescue, boosting revenue. Strip it off, and the operating (underlying) profit is muted for the quarter gone by.
Watch list comprises loans
