Axis Bank shares crash 9.4% as asset quality worsens

Brokerages cut price target and earnings forecast

Shares of Axis Bank dropped on Wednesday by the most in two years, after the third largest private sector lender’s profit missed Street expectations, amid worsening of asset quality. The stock declined 9.4 per cent to close at Rs 465, with a little more than Rs 10,000 crore of value getting eroded.
 

Source: Brokerage reports

Axis reported gross non-performing assets (NPAs) of 5.9 per cent for the quarter ended September, compared with 4.17 per cent for the same quarter last year. It reported net profit of Rs