Gold Silver Reports (GSR) – Axis Bank Stock Rebounds Despite Posting Surprise Loss In March Quarter – Shares of the Mumbai-based private sector lender rose as much as 5.88 percent, the most in over two months, to Rs 522.80. Axis Bank reported its first ever quarterly loss since listing as the bank accelerated recognition of bad loans, leading to a surge in provisions.
The private lender reported a net loss of Rs 2,188.7 crore in the January-March quarter compared with a profit of Rs 1,225 crore a year ago, according to its exchange filing. Analysts tracked by Bloomberg had estimated a Rs 663 crore profit. The bank also reported tax write-back of Rs 1,300 crore, without which the net loss would have been wider.
The bank rebounded from three-day losing spree after the outgoing CEO Shikha Sharma announced a new business strategy for financial year 2018-19 that would focus on normalising credit risk, delivering profitable growth, enhance capabilities and invest in the future.
According to both Shikha Sharma and Jairam Sridharan, Axis Bank’s asset quality and profitability will improve in the second half of the current financial year. The progress in the insolvency and bankruptcy process, a pick-up in the investment climate and a healthy consumer growth story gave Sharma confidence of a turnaround.
Opening Bell – Indian equity benchmarks edged higher led by Reliance Industries, Axis Bank, ICICI Bank and Larsen & Toubro.
The S&P BSE Sensex rose 0.6 percent or 217 points to 34,926 and the NSE Nifty 50 index gained 0.6 percent or 68 points to 10,686.
Sixteen out of 19 sector gauges compiled by BSE were trading higher led by the S&P BSE Energy index’s 1.8 percent gain. On the flipside, the S&P BSE telecom index was the top sectoral loser, down 0.3 percent.
