Axis Bank says 80% bad loans secured; shares gain
After RBI identified 12 accounts, Axis Bank said their exposure was in 8 accounts and 80% of the outstanding loan was secured.
- Axis Bank had exposure in 8 accounts out of those identified by RBI
- Axis Bank kept provisions of Rs 2,497 crore for these accounts
- Gross NPAs of Axis Bank was at Rs 21,280.50 crore as on March 2017
Share price of Axis Bank surged over 7% after the bank said that about 80% of its bad loans in 12 companies identified for IBC were secured.
In a statement, Axis Bank said, “The bank had exposure on 8 of these accounts identified by the RBI as on March 31, 2017.” It said that total outstanding of the bank on these accounts stood at Rs 5,071 crore. While non-fund based outstanding was at Rs 212 crore as on March 2017.
The Reserve Bank of India had issued directions to Axis Bank on June 15, 2017 advising the bank to initiate insolvency resolution process in select accounts accounts under provisions of the Insolvency & Bankruptcy Code (IBC).
RBI through its its Internal Advisory Committee (IAC) on June 13, 2017, recognized 12 accounts for resolution under IBC.
By end of FY17, Axis Bank's gross NPAs rose 5.04% compared to just 1.67% in FY16.
In value terms, gross NPAs were at Rs 21,280.50 crore in FY17 as against Rs 6,087. 51 crore in the similar period of the previous year.
At 1235 hours, share price of Axis Bank was trading at Rs 511.10 per piece higher by Rs 19 or 3.88%.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.