MUMBAI Axis Bank Ltd, India's third-biggest private sector lender by assets, reported on Thursday third-quarter net profit tumbled 73 percent as provisions for bad loans jumped.Net profit fell to 5.80 billion rupees ($85 million) for the three months ended Dec. 31, from 21.75 billion rupees a year earlier, missing 7.79 billion rupees on average expected by analysts. Gross bad loans as a percentage of total loans rose to 5.22 percent from 4.17 percent in the previous quarter, and compared with 1.68 percent a year ago. Provisions, including for bad loans, surged more than five times from a year earlier to 37.96 billion rupees.Ahead of the results, Axis shares closed down about 1 percent in a Mumbai market that gained 0.22 percent.
Earlier in the day, Axis Bank's smaller rival - Yes Bank - reported a better-than-expected 31 percent rise in net third-quarter net profit to 8.83 billion rupees. Another private sector lender Federal Bank Ltd reported a 26 percent rise in third-quarter profit, roughly matching estimates.
Lakshmi Vilas Bank, which also reported on Thursday, saw its net profit rising about 70 percent.
($1 = 68.1550 Indian rupees) (Reporting by Devidutta Tripathy; Editing by Sherry Jacob-Phillips)
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Updated Date: Jan 19, 2017 17:08 PM