The bank had posted a net profit of Rs 1,225.10 crore in the corresponding quarter past year.
Axis Bank share price rallied most in six months even as country's third largest private sector lender by assets reported quarterly losses for the first time ever.
The profit growth was backed by a rise in net interest income (NII), the core income a bank earns by giving loans. This was largely due to muted interest income in Q4FY18 at Rs. 11,771 crore and Rs. 11,168 crore in Q4FY17.
Axis Bank's net loss was at Rs 2,189 crore for the fiscal fourth quarter to March 31, said the Mumbai-based bank, which was founded in 1993.
In absolute value, the gross NPAs were Rs 373.14 crore, compared with Rs 86.26 crore.
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According to the lender, its net loss stood at Rs 2,189 crore during the fourth quarter (Q4) of 2017-18 from a net profit of Rs 1,225 crore reported for the corresponding period of last fiscal.
Even though it is well-capitalised with an overall buffer of over 18 per cent, the bank board has made a decision to raise up to United States dollars 1 billion in core equity, Kapoor said, adding it may consider raising the money by the end of the FY19 if it sees some opportunities for its use.
Corporate lending slippages stood at Rs 13,938 crore.
Total assets of the private-sector lender grew by 45.3 per cent to Rs 3.12 lakh crore as of March 31, 2018, while its deposits grew by 40.5 per cent to Rs 2.01 lakh crore.
Sharma added: "For the asset quality pain to truly moderate, however, it is critical for us to complete the NPA recognition process, and put the last cycle behind us". "After making mandatory appropriations to statutory reserve, investment reserve and capital reserve, no profit is available for distribution as dividend for the financial year ended 31 March 2018". In July 2017, Sharma was recommended for a three-year reappointment by the bank's board, effective from July 2018. The bank has retained provision coverage ratio at a healthy 65 per cent. "Many analysts at leading brokerages seem to believe that the worst is over for Axis Bank and expect the bank to step up stressed loan recovery after recognizing the stressed assets this quarter". The divergence between what the bank reported and what the RBI auditors found were to the tune of Rs 4,867 crore in 2016-17 and Rs 9,478 crore for 2015-16. It reached a day's high of Rs 500.35 on BSE and the day's bottom of Rs 484.65 before closing down 0.77 per cent at Rs 494.55 on BSE. The stock was the biggest gainer on both Sensex and Nifty.