Shares of India's Axis Bank fell 3.7% on Friday, a day after the lender posted a smaller-than-expected quarterly profit increase, weighed down by slower loan growth and higher provisions set aside for potential bad loans.

Gross slippages for the December quarter rose 22% sequentially and 46% annually to ₹5,432 crore, the bank said in statement detailing its quarterly results. Slippages to the tune of ₹4,923 crore were from the retail book,

Axis Bank's shares fell nearly 5 per cent on Friday, closing at Rs 991.25, after the private sector lender reported weak financial results for the quarter ending December 2024 (Q3FY25). The results highlighted the bank's slippages and credit costs reaching multi-quarter highs, while its growth and margins were at multi-quarter lows.

India's Axis Bank reported a smaller-than-expected rise in third-quarter profit on Thursday, as it set aside more funds for potential bad loans amid a slight deterioration in asset quality. The country's fourth-largest private lender by market capitalisation said its standalone net profit - which excludes earnings of its subsidiaries - rose 4% to 63.

Results: Private lender Axis Bank on Thursday, reported a standalone net profit increase of 3.8%, reaching ₹6,304 crore in December 2024, compared to a profit after tax (PAT) of ₹6,071 crore in the corresponding quarter of the previous financial year.

India's Axis Bank reported a 4% year-on-year rise in third-quarter profit on Thursday, helped by higher core lending income.