New Delhi, July 20 -- Axis Bank share price dropped nearly 6% on Monday, 20 July, as concerns over shrinking net interest margins and softer asset quality outweighed the bank's strong June quarter profit growth.

Axis Bank reported a 22.23% year-on-year increase in consolidated net profit to Rs.7,632.31 crore for the June quarter, aided by lower provisions. On a standalone basis, net profit rose 23% to Rs.7,114 crore.

The bank's net interest income (NII) grew 8% to Rs.14,646 crore, supported by a 19% growth in advances. However, net interest margin (NIM) narrowed to 3.46%, compared with 3.80% a year ago and 3.73% in the March quarter, reflecting pressure on lending spreads.

Commenting on the outlook, Amitabh Chaudhry, Managing Director ...