Axis Bank’s eight NPA assets to be identified by other lenders too
Posted on 24th October 2017 |
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| The eight consortium accounts that were classified as non-performing assets by Axis Bank last week after a directive from the Reserve Bank of India will have to be classified as NPAs by the other lenders who are part of the consortium, bankers said. The banking sector’s exposure to these accounts would be close to Rs 40,000 crores, Axis Bank told analysts at its recently-held second quarter post-earning call. “The other banks will definitely have to treat them as NPA since these are consortium accounts,” a senior banker with a state-run lender said. Some of the smaller accounts may have already been classified as NPA by the other lenders, he said. A senior official at Axis Bank said more clarity on these accounts will emerge once the other large banks announce their second quarter results. In its post-earnings call with analysts, Axis Bank said the joint lenders’ forum have taken certain decisions regarding these accounts. “We have been in line with the decisions taken by the JLF, and to some extent, we need to see how RBI treats these accounts across bank,” Axis Bank said. Axis Bank has reclassified 9 standard assets as non-performing assets after the RBI asked them to be reclassified as part of its annual review process. Axis Bank said that as on June 30, 2017, these 9 accounts were classified as standard assets across most consortium banks, with only about 6% of the total outstanding of these accounts being classified as NPAs across the sector. As on 30th September 2017, the fund-based outstanding of these 9 accounts for Axis Bank was Rs 4,867 crore, all of which now stands as NPA, it said, adding that Rs 2,400 crore of this is from accounts that are either a part of the bank’s watch list or were restructured as on March 30. One of these large accounts is in the steel sector, which contributes Rs 1,128 crore. The power sector has 3 accounts amounting to R1,685 crore and there is one account in the IT/ITES sector, which contributes Rs 1,143 crore. The remaining 4 accounts together comprise Rs 911 crore. Axis bank is the sole banker for the account in the IT/ITES sector. It said it expects a fairly significant part of the account to get repaid after the conclusion of a business sale transaction for which the binding agreement is already in place. Axis Bank has created a total provision of Rs 1,618 crore for these 9 accounts during the July-September quarter. |
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Bharti Airtel defers Q2 results till Nov 14 over ambiguity on AGR verdict
Posted on 29th October 2019 |
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Bharti Airtel said on Tuesday it has postponed its second-quarter earnings report to mid-November, as the wireless operator sought clarity on the court ruling asking telecom firms to cough up overdue payments to the government.
Shares of the company, which was expected to release its quarterly numbers later in the day, dropped 3.3 per cent in early trade. |
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Rupee slips 8 paise vs US dollar in early trade amid drop in oil prices
Posted on 7th October 2019 |
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The rupee on Monday opened eight paise lower at 70.96 against the US dollar amid drop in crude oil prices and rise in Asian equities. The domestic unit on Friday closed almost flat at 70.88 against after the Reserve Bank of India (RBI) in a widely expected move cut key interest rates by 0.25 percentage point. On a weekly basis, the local unit slumped by 32 paise. |
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LIC pips private insurers in first-year premium growth during April-August
Posted on 13th September 2019 |
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In the first five months of the current financial year, first-year premiums of life insurance companies grew by 39.84% (year-on-year) at Rs 1.05 lakh crore as compared to Rs 75,588.35 crore in April-August of 2018-19. Life Insurance Corporation of India (LIC) continued to grow at a faster pace compared to private insurance players, shows the data from the Insurance Regulatory and Development Authority of India (Irdai). |
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Apollo Hospitals rules out further stake sale
Posted on 13th September 2019 |
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Apollo Hospitals Enterprise (AHEL) has ruled out further dilution of promoters’ stake in the company. The company also said its Rs 1,337-crore stake sale of Apollo Munich Health Insurance with mortgage major HDFC will be concluded by October. Following these stake sales, the promoters’ pledged position will come down from a high of 76% to 54% by October and eventually to 20% by November or December, company sources said here. |
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World trusts India on Kashmir, not us: Pakistan minister Ijaz Ahmed Shah
Posted on 13th September 2019 |
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In a major embarrassment for Pakistan and its Prime Minister Imran Khan, the country's Interior Minister Ijaz Ahmed Shah, a retired brigadier, said the international community didn't believe Pakistan's narrative on Kashmir; instead it is India whose version is trusted. |
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