Axis Bank posts net loss for Q4FY18

YES Bank share price rallies 11% intraday as Q4 profit beats estimates

YES Bank share price rallies 11% intraday as Q4 profit beats estimates

The bank had posted a net profit of Rs 1,225.10 crore in the corresponding quarter previous year. Further, the bank's asset quality also deteriorated and the bank posted net loss for the quarter. This was largely due to muted interest income in Q4FY18 at Rs. 11,771 crore and Rs. 11,168 crore in Q4FY17.

Axis Bank, the third largest private lender, reported a loss of Rs 2,188.7 crore in the fourth quarter ending March 31 2018, its first quarterly loss since its listing in 1998 on the back of a sharp rise in non-performing assets of Rs 34,248 crore.

In absolute value, the gross NPAs were Rs 373.14 crore, compared with Rs 86.26 crore.

The bank saw its provisions and contingencies spiking almost three-fold to Rs 7,179.53 crore in the fourth quarter against Rs 2,581.25 crore previous year.

Even though it is well-capitalised with an overall buffer of over 18 per cent, the bank board has chose to raise up to Dollars 1 billion in core equity, Kapoor said, adding it may consider raising the money by the end of the FY19 if it sees some opportunities for its use.

For the full fiscal year to March, its profit soared 42 per cent to Rs 635 crore.

Total assets of the private-sector lender grew by 45.3 per cent to Rs 3.12 lakh crore as of March 31, 2018, while its deposits grew by 40.5 per cent to Rs 2.01 lakh crore.

With this, the recognition of bad loans in this cycle is "nearly complete", said outgoing chief executive officer Shikha Sharma.

The company has posted net profit of Rs.(2188.74) crores for the period ended March 31, 2018 as against Rs.1225.10 crores for the period ended March 31, 2017. "The bank expects to grow its loans in high teens to 20 per cent. Margins are expected to be steady next year, RoE is expected to be around 18 per cent". The bank has retained provision coverage ratio at a healthy 65 per cent.

As per Ghosh, the bank is targeting to "minimise" its bad loans ratio and relying more on tracking the daily on-time repayment rate (OTR) to achieve the goal and deploying more field force. "This journey continues", said Ms. Sharma, who has made a decision to step down from the helm at the end of December. In December 2017, there were reports of alleged WhatsApp "leaks" of price-sensitive earning data, which the Securities and Exchange Board of India (Sebi) ordered a probe into.

Investors lapped up the yes Bank counter with the scrip rallying 8.26 per cent to Rs 352.05 on the BSE as against gains of 0.62 per cent on the benchmark.

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