Axis Bank shares rise,its worst seems over,After Q4 loss
Axis Bank shares rise,its worst seems over,After Q4 loss
After co.'s net loss of Rs 2,188.74 cr for quarter ended Mar, 2018 due to higher provisioning for bad loans.On Apr'26,it rose in 6 months as a recognition of bad loans made investors to overlook Indian lender’s first-ever loss.In 3 months ended March from Rs 2810 cr previous quarter as an additional Rs 16500 cr of fresh defaults were identified after implementation of tighter regulations, provisions rose to Rs 7180 cr.Bank reported a loss of Rs 2190 cr,& compared with a Rs 662 cr profit prediction of bad loans in this cycle is complete. Watch list of Lenders came down to 0.1% of its total loan book from 1.3% previous quarter & 2.5% previous FY.
Shikha Sharma Axis Bank's outgoing MD and CEO in a press conference after the company reported a net loss of Rs 2,188.74 crore for the quarter ended March 2018 due to higher provisioning for bad loans, in Mumbai. on Apr'26. It rose in six months as an unprecedented recognition of bad loans made investors to overlook the Indian lender’s first-ever loss.
In the three months ended March from Rs 2810 crore the previous quarter as an additional Rs 16500 crore of fresh defaults were identified after the implementation of tighter regulations, provisions rose to Rs 7180 crore ($1.1 billion). The bank reported a loss of Rs 2190 crore, the first in data going back to 2006, and compared with a Rs 662 crore profit predicted in a survey.
Recognition of bad loans in this cycle is complete. Watch list of Lenders came down to 0.1% of its total loan book from 1.3% the previous quarter and 2.5 percent the previous F Y.
It is expected that lenders loan recovery will be boosted, after recognizing the stressed assets this quarter. For Axis Bank worst seems to be over. Normalcy will be back as 'Bad-loan' formation is to be less,with bottomed out margins.
The Mumbai-based brokerage cut its target price on India’s third-largest private bank to 585 rupees from 621 rupees with a recommendation to buy the stock. Emkay Global Financial Services Ltd. cut its target to Rs 560 from Rs 591 with a recommendation to accumulate. BOB Capital Markets cut its forecast to Rs 595 from Rs 660 with a call to add.
There won't be much problem after present CEO leaves, as Emkay Global Financial Services Ltd., wrote.It is expected that Bank's earnings will be restored, inspite of bank's upfront recognition of stressed assets, by March 2020.
Its shares fell by 3% on Apr'27 but recovered to 5.07% higher at Rs 519.10 in Mumbai.On National Stock Exchange it was the most traded share by value and volume.
Ref. : https://www.hindustantimes.com/business-news/after-surprise-q4-loss-the-worst-seems-over-for-axis-bank-as-shares-rise/story-fuub3XkRxaYeTHlb3zmGJN.html --- Dated: Apr'27,2018
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