Axis Bank, Lakshmi Vilas Bank, Federal Bank fall post June quarter results

STOCK MARKET - Shares of Axis Bank, Lakshmi Vilas Bank and Federal Bank were down by up to 6% on BSE in otherwise firm market after the banks reported poor financial results for the quarter ended June 2017 (Q1FY18).

Federal Bank dipped 6% to Rs 112 on BSE in intra-day trade after the bank reported a lower than expected 26% year on year (Y-o-Y) growth in net profit at Rs 210 crore in Q1FY18 against Rs 167 crore in year ago quarter.

Net interest income during the quarter under review grew 16% to Rs 801 crore from Rs 692 crore in the corresponding quarter of previous fiscal. Net interest margin contracted 15 bps to 3.13% from 3.28% in Q1FY17.

Analysts on an average had expected profit of Rs 255 crore on net income of Rs 927 crore for the quarter.

Lakshmi Villas Bank too lost 6% to Rs 183 after the lender reported 8.9% Y-o-Y rise in its net profit at Rs 66.12 crore in Q1FY18. It had recorded Rs 60.68 crore during corresponding quarter of previous year.

Assets quality deteriorated with gross non-performing assets, as a percentage of net advances by June 30, 2017, rose to 3.78% during the quarter under review, compared to 2.14% in the same period last year. Net NPAs stood at 2.84% as on June 30, 2017 from 1.30% at the end of June 2016.

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