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Indian private lender Axis Bank reported a first-quarter profit on Wednesday that missed analyst estimates, as higher provisions weighed.

The Mumbai-based lender's standalone net profit - which excludes its subsidiaries - rose 4% year-on-year to 60.35 billion rupees ($721.2 million) for the quarter ended June 30.

Analysts had estimated a profit of 64.50 billion rupees, as per LSEG data.

Provisions and contingencies, or funds kept aside for potential bad loans, rose 97% to 20.39 billion rupees.

Lenders typically choose to set aside more funds to cover for potential bad loans and against any unforeseen events.

Axis Bank's net interest income - the difference between interest earned and paid - rose about 13% to 134.48 billion rupees, as per Reuters' calculations.

Its non-performing assets ratio, a key gauge of lenders' asset quality, rose to 1.54% at the end of June from 1.43% three months earlier, indicating that asset quality deteriorated.

($1 = 83.6810 Indian rupees)