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.

Executives at the country’s third largest private sector lender said the bank sees a degree of indebtedness in certain segments of the borrowers, which led to taking a deliberate call on slowing loan

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.

Axis Bank's shares drop 5.90% on NSE, Q3FY25 net profit rises 3.83%, provisions double, asset quality concerns grow.

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.