Axis Bank posts highest quarterly loss since its listing

share on:
axis bank

Private lender Axis Bank on Thursday posted a record Rs 2189 crore loss in Q4 ending March this year, plagued by a rise in provisions for bad loans.

The bank had reported an annual profit of Rs1225 crore during the same quarter last year.

This is the highest quarterly loss by a private lender and the first for Axis Bank since its listing in 1998.

The result marks a troubled year for the bank especially after its CEO, Shikha Sharma announced that she will step down in December-end this year.

Although the quarterly loss is the highest for a private bank, public sector banks have reported larger losses.

Also, many banks are expected to incur losses in the fourth quarter of FY18 because of new bad loan recognition norms announced by the RBI, with strict rules.

Analysts had on average expected a profit of Rs 514 crore, as per a Reuters data.

“The financial results this quarter are a reflection of the bank’s desire to accelerate non-performing assets recognition, and we have taken a very conservative view of the recent regulatory changes and have executed all the necessary NPA regulations,” said Sharma.

Speaking to the media for the first time after announcing her decision to step down, Sharma also said that for the last nine years, Axis Bank has continued to build on its strength in deposit mobilization and grown market share in deposits from 2.9% in FY09 to 3.7% as of December-end.

Announcing the results, CFO, Jairam Sridharan said that following the NPA recognition during the quarter, the BB-rated portion of the bank’s loan book has shrunk to 1.8 percent from 7.3 percent earlier.

However, the bank’s capital adequacy ratio continued to be healthy at 16.57% — much above the regulatory requirement, which gives it headroom to grow, he added.

Also Read: Yes Bank gains 29 percent in the fourth-quarter

share on: