Shares of Axis Bank slipped 6.15% on Wednesday after the company reported a standalone net loss of ₹1,387.78 crore for March quarter of FY20.
However, analysts stayed upbeat on the private lender's ability to manage underlying stress. According to analysts at Edelweiss Securities Ltd, though FY20 has been volatile given asset quality deterioration Axis Bank's revamped strategy, sustained investments and strengthening franchise, not to mention de-risking initiatives, along with focus on transparency and conservatism augur well for the future beyond covid-19.
Axis Bank reported a loss despite 17% year-on-year growth in operating profits in March quarter due to higher provision for bad loans and covid-19 related economic impact.