AXISBANK
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India New Issue-Cube Highways Trust to issue multiple-tenor bonds, bankers say
MUMBAI, Aug 19 (Reuters) - India's Cube Highways Trust plans to raise 8.2 billion rupees ($93.88 million) for the sale of bonds maturing in three years and six months and 10 years, three bankers said on Tuesday.
It will pay a coupon of 6.9300% and 7.3015%, respectively, on a quarterly basis, and has invited commitment bids for the issue later in the day, they said.
The company did not respond to a Reuters email seeking comment.
Here is the list of deals reported so far on August 19:
Issuer | Tenure | Coupon (in %) | Issue size (in bln rupees)* | Bidding date | Rating |
Cube Highways Trust | 3 years and 6 months | 6.9300 | 4.2 | August 19 | AAA (India Rating, Icra) |
Cube Highways Trust | 10 years | 7.3015 | 4 | August 19 | AAA(India Rating, Icra) |
*Size includes base plus greenshoe for some issues
($1 = 87.3440 Indian rupees)
(Reporting by Khushi Malhotra and Dharamraj Dhutia)
MUMBAI, Aug 19 (Reuters) - India's Cube Highways Trust plans to raise 8.2 billion rupees ($93.88 million) for the sale of bonds maturing in three years and six months and 10 years, three bankers said on Tuesday.
It will pay a coupon of 6.9300% and 7.3015%, respectively, on a quarterly basis, and has invited commitment bids for the issue later in the day, they said.
The company did not respond to a Reuters email seeking comment.
Here is the list of deals reported so far on August 19:
Issuer | Tenure | Coupon (in %) | Issue size (in bln rupees)* | Bidding date | Rating |
Cube Highways Trust | 3 years and 6 months | 6.9300 | 4.2 | August 19 | AAA (India Rating, Icra) |
Cube Highways Trust | 10 years | 7.3015 | 4 | August 19 | AAA(India Rating, Icra) |
*Size includes base plus greenshoe for some issues
($1 = 87.3440 Indian rupees)
(Reporting by Khushi Malhotra and Dharamraj Dhutia)
India File: Tariff blow unlikely to deter US firms
India File is published every Tuesday. Think your friend or colleague should know about us? Forward this newsletter to them. They can also subscribe here.
Aug 5 - By Nidhi C Sai, Editor Online Production, with global Reuters staff
Trump's trade punches on India appear to be heavy. A sweeping 25% tariff on key exports from the nation and a threat to "substantially" raise it over its Russian oil purchases look set to upend months of negotiations and squeeze labour-intensive sectors in the world's fifth-largest economy.
While those moves are making some Indian companies ponder their future, U.S. firms are unlikely to blink. From Apple AAPL.O to Google, big names are doubling down on India and betting on its long-term promise despite the rising geopolitical heat. That's our focus this week.
We also detail how a Chinese missile, an intelligence lapse, and a surprise strike helped Pakistan shoot down a Rafale fighter jet, marking one of the most dramatic air battles in years. Scroll down for more on that.
THIS WEEK IN ASIA
** South Korea, US prepare for summit with details of trade deal unresolved
** China's independent oil firms elbow into Iraq's majors-dominated market
** Japan ready to compile extra budget to cushion US tariff blow, PM Ishiba says
** China's solar giants quietly shed a third of their workforces last year
** Old trees and ageing farmers worsen outlook for top palm oil exporters
KICKED IN THE TEETH BY US TARIFFS
India is bracing for fresh pain on trade as U.S. President Donald Trump imposed 25% tariffs on a wide range of its goods, treating Asia's third-largest economy more harshly than other major U.S. partners.
And in a move that India said was unjustified, Trump threatened to raise tariffs again over its purchase of oil from Russia.
The tariff imposition is expected to ripple through India's export engine. High-employment sectors, especially readymade garments, gems, jewellery, electronics and marine products, face steep duties in their crucial U.S. market.
"While further trade talks may bring the tariff rate down, it appears unlikely that India will secure a significantly better outcome than its eastern neighbours," said Priyanka Kishore, an economist at Asia Decoded.
Economists warn of a near-term hit to India's growth and sentiment. The rupee weakened after last week's announcement, and some analysts expect up to 40 basis points shaved off GDP in the year to March 2026 if the tariffs stay.
"If these tariffs remain in place, they could undermine India's growing appeal to businesses seeking trade diversion in low-value-added manufacturing sectors," said Raphael Luescher, Co-Head of EM equities at Vontobel.
India's $45.7 billion trade surplus with the U.S., which is equivalent to 1.2% of GDP in 2024, has been a major source of resilience amid global slowdowns. Halving that, some analysts say, could dent the 'safe haven' narrative that's helped India attract global capital even as China cools.
The most immediate pain is in workforce-heavy sectors. Apparel exporters such as Welspun Living WLSP.NS, Gokaldas Exports GOKL.NS, and Indo Count ICNT.NS, who send up to 70% of their output to the U.S., have warned of potential order losses and delayed expansion. Diamond and jewellery firms too are forecasting a slump in shipments ahead of the vital holiday season. The U.S. is India's largest market for garments and jewellery, with nearly $22 billion in exports in 2024.
"A blanket tariff of this magnitude will inflate costs, delay shipments, distort pricing, and place immense pressure on every part of the value chain, from lower-level worker to large manufacturers," said Kirit Bhansali, chair of the Gem & Jewellery Export Promotion Council.
The Indian government, under pressure to protect farmers ahead of elections in a key state, has refused to concede on agricultural access - a major U.S. demand. That has stalled trade talks despite months of backchannel engagement. In Parliament, trade minister Piyush Goyal said India remains committed to "protecting and promoting the welfare" of its farmers and entrepreneurs.
US FIRMS LIKELY TO STAY THE COURSE
Even as Trump's latest tariffs threaten to disrupt India's China-plus-one ambitions, U.S. corporate confidence in the country is expected to remain firm, driven by its vast consumer market and limited manufacturing and investment ties to Beijing.
Apple has become more reliant than ever on India to feed its U.S. supply chain. Nearly all of Foxconn's 2317.TW $3.2 billion worth of iPhones exported from India between March and May went to the U.S. Between April and June, 71% of iPhones sold in the U.S. were India-made, up from just 31% a year ago.
"Making supply chain adjustments, particularly with new iPhone models nearing release, is unlikely due to the complex factors involved," said Tarun Pathak of Counterpoint Research. "It is expected to be business as usual."
Apple is not alone. Alphabet's GOOGL.O Google is investing $6 billion in Andhra Pradesh to build Asia's largest data center by capacity, including $2 billion in renewable energy. Drugmaker Amgen's AMGN.O CEO said in February the company will invest about $200 million in an AI-driven innovation hub in southern India, and Tesla TSLA.O launched its Model Y SUV in Mumbai just last month, despite import tariffs in India that can exceed 100% on cars.
U.S. retailer Costco COST.O is also joining the fray, with plans to open its first Global Capability Centre in Hyderabad, focused on technology and research operations that will initially employ 1,000 people and scale up.
India's growing local component ecosystem, wage levels around half of China's, and federal incentives make it more cost-competitive than ever, especially in tech and electronics manufacturing. In sectors such as pharmaceuticals and chemicals, exposure to the U.S. remains high, but players are already seeking workarounds or shifting supply chains to protect earnings.
In this standoff, short-term pain may sting India, but long-term positioning is still in play. Talks are expected to resume in mid-August, and while a quick breakthrough may not materialise, analysts say the fundamentals of India's economic story remain intact.
Sign up for the Reuters Tariff Watch newsletter here.
Can India shield its politically sensitive farm sector and stop its Russian oil purchases while keeping its trade ties with Washington from unravelling? Or will economic pragmatism force a compromise in the face of Trump's tariff shock? Write to me at [email protected].
THE WEEK'S MUST READ
A Chinese-made missile and an intelligence lapse helped Pakistan shoot down a Rafale fighter jet during a major India-Pakistan aerial clash in May, officials said. The Pakistani J-10C fired a PL-15 missile from around 200 km (124.3 miles), farther than Indian pilots had expected, after Delhi underestimated the missile's true range. The hour-long battle, involving about 110 aircraft, followed Indian strikes on Pakistan after a deadly militant attack in Indian Kashmir.
Pakistan used a "kill chain" linking Chinese jets, radar, and surveillance planes to track Indian aircraft without detection.
The incident raised doubts over Western fighter jets' dominance and boosted interest in Chinese alternatives like the J-10.
Dive into this insight by Reuters journalists Saeed Shah and Shivam Patel on how Pakistan brought down India's top fighter jet with Chinese tech.
MARKET MATTERS
Indian banks are tightening consumer lending just as rate cuts kick in, raising fears that cautious credit and weak household finances could dampen a consumption-led recovery.
Lenders are slowing disbursals for personal loans, credit cards, and vehicle financing. Growth in these segments slipped to single-digit percentage in May, from between 15% and 26% a year earlier, Reserve Bank of India data showed.
Top privately owned banks such as HDFC Bank HDBK.NS, ICICI Bank ICBK.NS, Axis Bank AXBK.NS, and Kotak Mahindra Bank KTKM.NS as well as large non-bank lender Bajaj Finance BJFN.NS have seen bad loans rise in the April-June quarter, hitting their bottom lines.
Read this in-depth report by Reuters journalists Jaspreet Kalra and Ashwin Manikandan.
Tariff rates threatened and agreed by Trump vary wildly https://reut.rs/3H0fuTl
Consumption oriented credit growth in India has slowed https://reut.rs/418CEO4
(Reporting by Nidhi C Sai; Editing by Muralikumar Anantharaman)
(([email protected]; +91 70456 55251))
India File is published every Tuesday. Think your friend or colleague should know about us? Forward this newsletter to them. They can also subscribe here.
Aug 5 - By Nidhi C Sai, Editor Online Production, with global Reuters staff
Trump's trade punches on India appear to be heavy. A sweeping 25% tariff on key exports from the nation and a threat to "substantially" raise it over its Russian oil purchases look set to upend months of negotiations and squeeze labour-intensive sectors in the world's fifth-largest economy.
While those moves are making some Indian companies ponder their future, U.S. firms are unlikely to blink. From Apple AAPL.O to Google, big names are doubling down on India and betting on its long-term promise despite the rising geopolitical heat. That's our focus this week.
We also detail how a Chinese missile, an intelligence lapse, and a surprise strike helped Pakistan shoot down a Rafale fighter jet, marking one of the most dramatic air battles in years. Scroll down for more on that.
THIS WEEK IN ASIA
** South Korea, US prepare for summit with details of trade deal unresolved
** China's independent oil firms elbow into Iraq's majors-dominated market
** Japan ready to compile extra budget to cushion US tariff blow, PM Ishiba says
** China's solar giants quietly shed a third of their workforces last year
** Old trees and ageing farmers worsen outlook for top palm oil exporters
KICKED IN THE TEETH BY US TARIFFS
India is bracing for fresh pain on trade as U.S. President Donald Trump imposed 25% tariffs on a wide range of its goods, treating Asia's third-largest economy more harshly than other major U.S. partners.
And in a move that India said was unjustified, Trump threatened to raise tariffs again over its purchase of oil from Russia.
The tariff imposition is expected to ripple through India's export engine. High-employment sectors, especially readymade garments, gems, jewellery, electronics and marine products, face steep duties in their crucial U.S. market.
"While further trade talks may bring the tariff rate down, it appears unlikely that India will secure a significantly better outcome than its eastern neighbours," said Priyanka Kishore, an economist at Asia Decoded.
Economists warn of a near-term hit to India's growth and sentiment. The rupee weakened after last week's announcement, and some analysts expect up to 40 basis points shaved off GDP in the year to March 2026 if the tariffs stay.
"If these tariffs remain in place, they could undermine India's growing appeal to businesses seeking trade diversion in low-value-added manufacturing sectors," said Raphael Luescher, Co-Head of EM equities at Vontobel.
India's $45.7 billion trade surplus with the U.S., which is equivalent to 1.2% of GDP in 2024, has been a major source of resilience amid global slowdowns. Halving that, some analysts say, could dent the 'safe haven' narrative that's helped India attract global capital even as China cools.
The most immediate pain is in workforce-heavy sectors. Apparel exporters such as Welspun Living WLSP.NS, Gokaldas Exports GOKL.NS, and Indo Count ICNT.NS, who send up to 70% of their output to the U.S., have warned of potential order losses and delayed expansion. Diamond and jewellery firms too are forecasting a slump in shipments ahead of the vital holiday season. The U.S. is India's largest market for garments and jewellery, with nearly $22 billion in exports in 2024.
"A blanket tariff of this magnitude will inflate costs, delay shipments, distort pricing, and place immense pressure on every part of the value chain, from lower-level worker to large manufacturers," said Kirit Bhansali, chair of the Gem & Jewellery Export Promotion Council.
The Indian government, under pressure to protect farmers ahead of elections in a key state, has refused to concede on agricultural access - a major U.S. demand. That has stalled trade talks despite months of backchannel engagement. In Parliament, trade minister Piyush Goyal said India remains committed to "protecting and promoting the welfare" of its farmers and entrepreneurs.
US FIRMS LIKELY TO STAY THE COURSE
Even as Trump's latest tariffs threaten to disrupt India's China-plus-one ambitions, U.S. corporate confidence in the country is expected to remain firm, driven by its vast consumer market and limited manufacturing and investment ties to Beijing.
Apple has become more reliant than ever on India to feed its U.S. supply chain. Nearly all of Foxconn's 2317.TW $3.2 billion worth of iPhones exported from India between March and May went to the U.S. Between April and June, 71% of iPhones sold in the U.S. were India-made, up from just 31% a year ago.
"Making supply chain adjustments, particularly with new iPhone models nearing release, is unlikely due to the complex factors involved," said Tarun Pathak of Counterpoint Research. "It is expected to be business as usual."
Apple is not alone. Alphabet's GOOGL.O Google is investing $6 billion in Andhra Pradesh to build Asia's largest data center by capacity, including $2 billion in renewable energy. Drugmaker Amgen's AMGN.O CEO said in February the company will invest about $200 million in an AI-driven innovation hub in southern India, and Tesla TSLA.O launched its Model Y SUV in Mumbai just last month, despite import tariffs in India that can exceed 100% on cars.
U.S. retailer Costco COST.O is also joining the fray, with plans to open its first Global Capability Centre in Hyderabad, focused on technology and research operations that will initially employ 1,000 people and scale up.
India's growing local component ecosystem, wage levels around half of China's, and federal incentives make it more cost-competitive than ever, especially in tech and electronics manufacturing. In sectors such as pharmaceuticals and chemicals, exposure to the U.S. remains high, but players are already seeking workarounds or shifting supply chains to protect earnings.
In this standoff, short-term pain may sting India, but long-term positioning is still in play. Talks are expected to resume in mid-August, and while a quick breakthrough may not materialise, analysts say the fundamentals of India's economic story remain intact.
Sign up for the Reuters Tariff Watch newsletter here.
Can India shield its politically sensitive farm sector and stop its Russian oil purchases while keeping its trade ties with Washington from unravelling? Or will economic pragmatism force a compromise in the face of Trump's tariff shock? Write to me at [email protected].
THE WEEK'S MUST READ
A Chinese-made missile and an intelligence lapse helped Pakistan shoot down a Rafale fighter jet during a major India-Pakistan aerial clash in May, officials said. The Pakistani J-10C fired a PL-15 missile from around 200 km (124.3 miles), farther than Indian pilots had expected, after Delhi underestimated the missile's true range. The hour-long battle, involving about 110 aircraft, followed Indian strikes on Pakistan after a deadly militant attack in Indian Kashmir.
Pakistan used a "kill chain" linking Chinese jets, radar, and surveillance planes to track Indian aircraft without detection.
The incident raised doubts over Western fighter jets' dominance and boosted interest in Chinese alternatives like the J-10.
Dive into this insight by Reuters journalists Saeed Shah and Shivam Patel on how Pakistan brought down India's top fighter jet with Chinese tech.
MARKET MATTERS
Indian banks are tightening consumer lending just as rate cuts kick in, raising fears that cautious credit and weak household finances could dampen a consumption-led recovery.
Lenders are slowing disbursals for personal loans, credit cards, and vehicle financing. Growth in these segments slipped to single-digit percentage in May, from between 15% and 26% a year earlier, Reserve Bank of India data showed.
Top privately owned banks such as HDFC Bank HDBK.NS, ICICI Bank ICBK.NS, Axis Bank AXBK.NS, and Kotak Mahindra Bank KTKM.NS as well as large non-bank lender Bajaj Finance BJFN.NS have seen bad loans rise in the April-June quarter, hitting their bottom lines.
Read this in-depth report by Reuters journalists Jaspreet Kalra and Ashwin Manikandan.
Tariff rates threatened and agreed by Trump vary wildly https://reut.rs/3H0fuTl
Consumption oriented credit growth in India has slowed https://reut.rs/418CEO4
(Reporting by Nidhi C Sai; Editing by Muralikumar Anantharaman)
(([email protected]; +91 70456 55251))
India's IndusInd Bank appoints industry veteran Rajiv Anand as CEO
Adds details in paragraph 4; background in paragraphs 3, 6 and 7
Aug 4 (Reuters) - India's IndusInd Bank
Anand, a veteran banker, is currently the deputy managing director at private lender Axis Bank AXBK.NS, and has held key management positions at leading global financial institutions.
He was one of three candidates shortlisted by the bank's board, Reuters reported last month. The two other candidates were Rahul Shukla and Anup Saha.
Anand's appointment was confirmed following the Reserve Bank of India's (RBI) clearance, which has the final authority on senior banking appointments.
IndusInd Bank took a $230 million hit in the year ended March 31 due to years of misaccounting of internal derivative trades, prompting the resignations of CEO Sumant Kathpalia and deputy Arun Khurana in April.
In the absence of a chief executive, the bank has been steered by the board and a panel of two senior officials.
Last week, the Mumbai-based bank said its "financials have returned to profitability", as it swung back to profit in the first quarter after its biggest-ever loss in the previous three months.
(Reporting by Mrinmay Dey in Bengaluru and Ira Dugal in Mumbai; Editing by Vijay Kishore and Shailesh Kuber)
(([email protected]; +91 7362903319;))
Adds details in paragraph 4; background in paragraphs 3, 6 and 7
Aug 4 (Reuters) - India's IndusInd Bank
Anand, a veteran banker, is currently the deputy managing director at private lender Axis Bank AXBK.NS, and has held key management positions at leading global financial institutions.
He was one of three candidates shortlisted by the bank's board, Reuters reported last month. The two other candidates were Rahul Shukla and Anup Saha.
Anand's appointment was confirmed following the Reserve Bank of India's (RBI) clearance, which has the final authority on senior banking appointments.
IndusInd Bank took a $230 million hit in the year ended March 31 due to years of misaccounting of internal derivative trades, prompting the resignations of CEO Sumant Kathpalia and deputy Arun Khurana in April.
In the absence of a chief executive, the bank has been steered by the board and a panel of two senior officials.
Last week, the Mumbai-based bank said its "financials have returned to profitability", as it swung back to profit in the first quarter after its biggest-ever loss in the previous three months.
(Reporting by Mrinmay Dey in Bengaluru and Ira Dugal in Mumbai; Editing by Vijay Kishore and Shailesh Kuber)
(([email protected]; +91 7362903319;))
India's Axis Bank set for worst month since November 2021
** Shares of Axis Bank AXBK.NS are up 0.5% at 1078 rupees
** Stock is down 10% in July, set for its worst month since November 2021
** Earlier this month, the private-lender reported a fall in first-quarter profit hurt by higher provisions for bad loans
** Since then, stock has lost 7%
** AXBK up 1% so far in 2025 vs a 14% rise in the Nifty Financial Services index .NIFTYFIN
(Reporting by Nishit Navin in Bengaluru)
** Shares of Axis Bank AXBK.NS are up 0.5% at 1078 rupees
** Stock is down 10% in July, set for its worst month since November 2021
** Earlier this month, the private-lender reported a fall in first-quarter profit hurt by higher provisions for bad loans
** Since then, stock has lost 7%
** AXBK up 1% so far in 2025 vs a 14% rise in the Nifty Financial Services index .NIFTYFIN
(Reporting by Nishit Navin in Bengaluru)
India's HDFC Bank reports 12.2% profit growth in Q1 due to higher interest income
July 19 (Reuters) - HDFC Bank HDBK.NS, India's largest private bank by market capitalisation, reported higher-than-expected quarterly profit on Saturday due to a surge in interest income from loans and treasury gains, even as provisions for bad loans spiked.
The bank's standalone net profit rose 12.2% to 181.55 billion rupees ($2.11 billion) in the April-to-June quarter, above the average analyst forecast of 172.84 billion rupees, according to data compiled by LSEG.
The bank's net interest income - the difference between interest earned on loans and paid on deposits - rose 5.4% to 314.38 billion rupees.
Other income, typically backed by treasury gains and fees on services, more than doubled to 217.29 billion rupees in the quarter.
HDFC Bank's provisions for bad loans, however, jumped five-fold to 144 billion rupees.
The bank, in its exchange filing, said most of these provisions were not linked to any actual bad loans but instead acted as a "countercyclical buffer for making the balance sheet more resilient."
Indian lenders have been grappling with an increase in bad loans in segments such as microfinance and unsecured portfolio, which have forced them to set aside more funds for potential defaults and to strengthen their balance sheets.
On Thursday, HDFC Bank peer Axis Bank AXBK.NS saw its new bad loans double due to a market benchmarking exercise.
While overall bank credit growth has slowed in India, HDFC Bank posted growth of 6.7% for its overall loan book, driven by a 17.1% rise in loans to small and medium businesses.
The private lender also approved its first ever bonus share issue on Saturday, meaning each of its shareholders will be eligible to receive an extra bonus share for every share held. The date of issuance is still to be determined, the bank said.
In a bonus issue, a company distributes additional stock to shareholders as a proportion of their holdings at no cost. It is typically a sign of confidence in financial performance and growth trajectory.
The board has also approved a special dividend of 5 rupees per share.
($1 = 86.1450 Indian rupees)
(Reporting by Ashwin Manikandan; Editing by Joe Bavier)
(([email protected];))
July 19 (Reuters) - HDFC Bank HDBK.NS, India's largest private bank by market capitalisation, reported higher-than-expected quarterly profit on Saturday due to a surge in interest income from loans and treasury gains, even as provisions for bad loans spiked.
The bank's standalone net profit rose 12.2% to 181.55 billion rupees ($2.11 billion) in the April-to-June quarter, above the average analyst forecast of 172.84 billion rupees, according to data compiled by LSEG.
The bank's net interest income - the difference between interest earned on loans and paid on deposits - rose 5.4% to 314.38 billion rupees.
Other income, typically backed by treasury gains and fees on services, more than doubled to 217.29 billion rupees in the quarter.
HDFC Bank's provisions for bad loans, however, jumped five-fold to 144 billion rupees.
The bank, in its exchange filing, said most of these provisions were not linked to any actual bad loans but instead acted as a "countercyclical buffer for making the balance sheet more resilient."
Indian lenders have been grappling with an increase in bad loans in segments such as microfinance and unsecured portfolio, which have forced them to set aside more funds for potential defaults and to strengthen their balance sheets.
On Thursday, HDFC Bank peer Axis Bank AXBK.NS saw its new bad loans double due to a market benchmarking exercise.
While overall bank credit growth has slowed in India, HDFC Bank posted growth of 6.7% for its overall loan book, driven by a 17.1% rise in loans to small and medium businesses.
The private lender also approved its first ever bonus share issue on Saturday, meaning each of its shareholders will be eligible to receive an extra bonus share for every share held. The date of issuance is still to be determined, the bank said.
In a bonus issue, a company distributes additional stock to shareholders as a proportion of their holdings at no cost. It is typically a sign of confidence in financial performance and growth trajectory.
The board has also approved a special dividend of 5 rupees per share.
($1 = 86.1450 Indian rupees)
(Reporting by Ashwin Manikandan; Editing by Joe Bavier)
(([email protected];))
India's Axis Bank slumps as first-quarter results disappoint
July 18 (Reuters) - India's Axis Bank AXBK.NS shed 4.6% on Friday, a day after the private lender reported an unexpected drop in June quarter profit, with analysts citing higher credit costs and margin pressures as key concerns.
The stock was the top loser on Nifty Bank .NSEBANK and Nifty Private Bank .NIFPVTBNK, which were trading 0.4% and 0.9% lower, respectively.
It also fell the most on benchmark Nifty 50 .NSEI, which was trading flat.
India's fourth-largest private lender by market value reported a surprise lower quarterly profit drop on Thursday, as its bad loans surged after a one-time industry benchmarking exercise. Its net interest margin also contracted to 3.8% from 4.05%.
The bank's new asset recognition norms weighed on asset quality, with high credit costs adversely impacting the profit, BOBCaps analysts said.
(Reporting by Kashish Tandon in Bengaluru)
(([email protected]; 8800437922;))
July 18 (Reuters) - India's Axis Bank AXBK.NS shed 4.6% on Friday, a day after the private lender reported an unexpected drop in June quarter profit, with analysts citing higher credit costs and margin pressures as key concerns.
The stock was the top loser on Nifty Bank .NSEBANK and Nifty Private Bank .NIFPVTBNK, which were trading 0.4% and 0.9% lower, respectively.
It also fell the most on benchmark Nifty 50 .NSEI, which was trading flat.
India's fourth-largest private lender by market value reported a surprise lower quarterly profit drop on Thursday, as its bad loans surged after a one-time industry benchmarking exercise. Its net interest margin also contracted to 3.8% from 4.05%.
The bank's new asset recognition norms weighed on asset quality, with high credit costs adversely impacting the profit, BOBCaps analysts said.
(Reporting by Kashish Tandon in Bengaluru)
(([email protected]; 8800437922;))
Axis Bank Q1 Net Profit 58.06 Bln Rupees
July 17 (Reuters) - Axis Bank Ltd AXBK.NS:
Q1 NET PROFIT 58.06 BILLION RUPEES; IBES PROFIT EST. 63.73 BILLION RUPEES
Q1 GROSS NPA 1.57%
Q1 PROVISIONS AND CONTINGENCIES 39.48 BILLION RUPEES
Q1 NET INTEREST INCOME 135.6 BLN RUPEES - REUTERS CALCULATION
Source text: [ID:]
Further company coverage: AXBK.NS
(([email protected];;))
July 17 (Reuters) - Axis Bank Ltd AXBK.NS:
Q1 NET PROFIT 58.06 BILLION RUPEES; IBES PROFIT EST. 63.73 BILLION RUPEES
Q1 GROSS NPA 1.57%
Q1 PROVISIONS AND CONTINGENCIES 39.48 BILLION RUPEES
Q1 NET INTEREST INCOME 135.6 BLN RUPEES - REUTERS CALCULATION
Source text: [ID:]
Further company coverage: AXBK.NS
(([email protected];;))
India's Max Financial reports cyber threat at unit
Adds details, background from paragraph 2 onwards
July 2 (Reuters) - India's Max Financial Services MAXI.NS said on Wednesday that its unit, Axis Max Life Insurance, received communication about unauthorized access to some customer data from an anonymous sender.
The company has initiated a security assessment and data log analysis, Max Financial said.
"A detailed investigation is also underway in consultation with information security experts to assess the root cause of the incident and take remedial action, as necessary" the company said in a statement.
Axis Max Life Insurance is a joint venture between private lender Axis Bank AXBK.NS and Max Financial.
Indian firms such as Angel One ANGO.NS, Niva Bupa Health Insurance NIVA.NS and Star Health STAU.NS and HDFC Life Insurance HDFL.NS have reported high-profile security breaches in the past 10 months.
The incidents prompted the country's insurance regulator to direct industry-wide audits of IT systems.
Cyber fraud cases in India jumped more than four times in fiscal 2024, causing losses of $20 million, Reuters reported earlier this year.
Internal government data as of April 2024 showed that individuals lost nearly $1.26 billion to cyber fraud at financial institutions since 2021.
(Reporting by Manvi Pant; Editing by Shreya Biswas and Tasim Zahid)
(([email protected]; +918447554364;))
Adds details, background from paragraph 2 onwards
July 2 (Reuters) - India's Max Financial Services MAXI.NS said on Wednesday that its unit, Axis Max Life Insurance, received communication about unauthorized access to some customer data from an anonymous sender.
The company has initiated a security assessment and data log analysis, Max Financial said.
"A detailed investigation is also underway in consultation with information security experts to assess the root cause of the incident and take remedial action, as necessary" the company said in a statement.
Axis Max Life Insurance is a joint venture between private lender Axis Bank AXBK.NS and Max Financial.
Indian firms such as Angel One ANGO.NS, Niva Bupa Health Insurance NIVA.NS and Star Health STAU.NS and HDFC Life Insurance HDFL.NS have reported high-profile security breaches in the past 10 months.
The incidents prompted the country's insurance regulator to direct industry-wide audits of IT systems.
Cyber fraud cases in India jumped more than four times in fiscal 2024, causing losses of $20 million, Reuters reported earlier this year.
Internal government data as of April 2024 showed that individuals lost nearly $1.26 billion to cyber fraud at financial institutions since 2021.
(Reporting by Manvi Pant; Editing by Shreya Biswas and Tasim Zahid)
(([email protected]; +918447554364;))
Axis Bank Says Fine Reduced From 26.4 Million Rupees To 3.9 Million Rupees
June 27 (Reuters) - Axis Bank Ltd AXBK.NS:
AXIS BANK LTD - FINE REDUCED FROM 26.4 MILLION RUPEES TO 3.9 MILLION RUPEES
Source text: ID:nNSESHl3k
Further company coverage: AXBK.NS
(([email protected];))
June 27 (Reuters) - Axis Bank Ltd AXBK.NS:
AXIS BANK LTD - FINE REDUCED FROM 26.4 MILLION RUPEES TO 3.9 MILLION RUPEES
Source text: ID:nNSESHl3k
Further company coverage: AXBK.NS
(([email protected];))
Axis Bank Appoints Kedar Joshi As Chief Audit Executive
June 19 (Reuters) - Axis Bank Ltd AXBK.NS:
KEDAR JOSHI APPOINTED AS CHIEF AUDIT EXECUTIVE
Source text: ID:nBSE8nWWgt
Further company coverage: AXBK.NS
(([email protected];))
June 19 (Reuters) - Axis Bank Ltd AXBK.NS:
KEDAR JOSHI APPOINTED AS CHIEF AUDIT EXECUTIVE
Source text: ID:nBSE8nWWgt
Further company coverage: AXBK.NS
(([email protected];))
BREAKINGVIEWS-Indian bank's clean-up is not inspiring, yet
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
By Shritama Bose
MUMBAI, May 22 (Reuters Breakingviews) - Sunil Mehta attempted to draw a line under accounting woes at IndusInd INBK.NS on Wednesday when he presented a full-year update for the bank, which remains without a CEO. The $7 billion Indian lender, the non-executive chairman said, was starting the new financial year with a "clean slate". Some of the details he revealed do not inspire confidence, however.
IndusInd's reversal of interest income on some inappropriately classified microloans dragged it to a net loss of 23.3 billion rupees ($272 million) in the three months to end March, its largest quarterly loss. That coupled with lapses in derivatives accounting reduced its full-year earnings by two-thirds.
This accounts for the full extent of the financial hit from the twin lapses, Mehta said. On the derivatives issue, he also presented some positive findings: the bank has received reports from unnamed external firms that determined the impact was the same as the bank's initial assessment.
If Mehta's overall confidence is not misplaced, the private sector bank is undervalued. IndusInd's crushed shares trade below their one-year forward book value; larger rival Axis Bank AXBK.NS commands a multiple nearly twice its net worth. ICICI ICBK.NS and Kotak Mahindra KTKM.NS enjoy more than three times.
Yet the board suspects employees of fraud, is still working with external advisors to identify the root causes, and IndusInd pointed to the likelihood of future legal action from regulators and investigative agencies. That suggests the fourth quarter may not mark the end of the problems.
Mehta is a grandee of Indian banking, and he oversaw the turnaround of Yes Bank YESB.NS before Japan's Sumitomo Mitsui Banking Corporation agreed to pick up a 20% stake in it this month. Yet the exit of IndusInd's CEO and his deputy has unnerved investors: the shares traded flat on Thursday, underscoring deep scepticism.
Banking analysts were scathing in their assessments too. HDFC Securities said its own channel checks concluded "structurally poor regulatory compliance" and "aggressive booking of fees across multiple businesses, which could come under deeper regulatory scrutiny".
Overall, the current picture keeps alive the possibility the central bank may appoint a state banker to the top role, a level of intervention the monetary authority's new governor Sanjay Malhotra has so far resisted. IndusInd will need to deliver strong results consistently before it wins back the benefit of the doubt.
Follow @ShritamaBose on X
CONTEXT NEWS
IndusInd Bank on May 21 reported a net loss of 23.3 billion rupees ($272 million) for the three months to March on account of interest reversals arising from incorrect classification of some microfinance loans.
A cumulative 1.73 billion rupees was incorrectly recorded as fee income in the nine months to the end of December, and reversed during the quarter ended March 2025, the bank said.
IndusInd's board suspects the occurrence of fraud and the involvement of certain employees that have a significant role in the accounting and financial reporting of the bank.
Sunil Mehta, non-executive chair of IndusInd, said the board is determined to address all identified issues so that they are appropriately resolved.
IndusInd trades on a price-to-book lower than peers https://www.reuters.com/graphics/BRV-BRV/klvymyramvg/chart.png
(Editing by Una Galani; Production by Ujjaini Dutta)
((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
By Shritama Bose
MUMBAI, May 22 (Reuters Breakingviews) - Sunil Mehta attempted to draw a line under accounting woes at IndusInd INBK.NS on Wednesday when he presented a full-year update for the bank, which remains without a CEO. The $7 billion Indian lender, the non-executive chairman said, was starting the new financial year with a "clean slate". Some of the details he revealed do not inspire confidence, however.
IndusInd's reversal of interest income on some inappropriately classified microloans dragged it to a net loss of 23.3 billion rupees ($272 million) in the three months to end March, its largest quarterly loss. That coupled with lapses in derivatives accounting reduced its full-year earnings by two-thirds.
This accounts for the full extent of the financial hit from the twin lapses, Mehta said. On the derivatives issue, he also presented some positive findings: the bank has received reports from unnamed external firms that determined the impact was the same as the bank's initial assessment.
If Mehta's overall confidence is not misplaced, the private sector bank is undervalued. IndusInd's crushed shares trade below their one-year forward book value; larger rival Axis Bank AXBK.NS commands a multiple nearly twice its net worth. ICICI ICBK.NS and Kotak Mahindra KTKM.NS enjoy more than three times.
Yet the board suspects employees of fraud, is still working with external advisors to identify the root causes, and IndusInd pointed to the likelihood of future legal action from regulators and investigative agencies. That suggests the fourth quarter may not mark the end of the problems.
Mehta is a grandee of Indian banking, and he oversaw the turnaround of Yes Bank YESB.NS before Japan's Sumitomo Mitsui Banking Corporation agreed to pick up a 20% stake in it this month. Yet the exit of IndusInd's CEO and his deputy has unnerved investors: the shares traded flat on Thursday, underscoring deep scepticism.
Banking analysts were scathing in their assessments too. HDFC Securities said its own channel checks concluded "structurally poor regulatory compliance" and "aggressive booking of fees across multiple businesses, which could come under deeper regulatory scrutiny".
Overall, the current picture keeps alive the possibility the central bank may appoint a state banker to the top role, a level of intervention the monetary authority's new governor Sanjay Malhotra has so far resisted. IndusInd will need to deliver strong results consistently before it wins back the benefit of the doubt.
Follow @ShritamaBose on X
CONTEXT NEWS
IndusInd Bank on May 21 reported a net loss of 23.3 billion rupees ($272 million) for the three months to March on account of interest reversals arising from incorrect classification of some microfinance loans.
A cumulative 1.73 billion rupees was incorrectly recorded as fee income in the nine months to the end of December, and reversed during the quarter ended March 2025, the bank said.
IndusInd's board suspects the occurrence of fraud and the involvement of certain employees that have a significant role in the accounting and financial reporting of the bank.
Sunil Mehta, non-executive chair of IndusInd, said the board is determined to address all identified issues so that they are appropriately resolved.
IndusInd trades on a price-to-book lower than peers https://www.reuters.com/graphics/BRV-BRV/klvymyramvg/chart.png
(Editing by Una Galani; Production by Ujjaini Dutta)
((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))
India New Issue-Axis Finance to issue over 3-year bonds, bankers say
MUMBAI, May 21 (Reuters) - India's Axis Finance plans to raise 10 billion rupees ($116.8 million), including a greenshoe option of 5 billion rupees, through a sale of bonds maturing in three years and three months, bankers said on Wednesday.
The company will pay an annual coupon of 7.37% on this issue and has invited bids on Thursday, the three bankers said.
Axis Finance did not reply to a Reuters request for comment.
Here is the list of deals reported so far on May 21:
Issuer | Tenure | Coupon (in %) | Issue size (in bln rupees)* | Bidding date | Rating |
Axis Finance | 3 years and 3 months | 7.37 | 5+5 | May 22 | AAA (India Ratings) |
Tata Capital July 2025 reissue | 2 year and 2 months | To be decided | 7.50+12.50 | May 21 | AAA (Icra, Crisil) |
Aditya Birla Housing Finance | 3 years | 7.3064 | 8.50+1.50 | May 21 | AAA (Icra, Crisil) |
Tata Capital Housing Finance | 2 year and 2 months | 7.12 | 15 | May 20 | AAA (Crisil) |
*Size includes base plus greenshoe for some issues
($1 = 85.6020 Indian rupees)
(Reporting by Dharamraj Dhutia; Editing by Sonia Cheema)
MUMBAI, May 21 (Reuters) - India's Axis Finance plans to raise 10 billion rupees ($116.8 million), including a greenshoe option of 5 billion rupees, through a sale of bonds maturing in three years and three months, bankers said on Wednesday.
The company will pay an annual coupon of 7.37% on this issue and has invited bids on Thursday, the three bankers said.
Axis Finance did not reply to a Reuters request for comment.
Here is the list of deals reported so far on May 21:
Issuer | Tenure | Coupon (in %) | Issue size (in bln rupees)* | Bidding date | Rating |
Axis Finance | 3 years and 3 months | 7.37 | 5+5 | May 22 | AAA (India Ratings) |
Tata Capital July 2025 reissue | 2 year and 2 months | To be decided | 7.50+12.50 | May 21 | AAA (Icra, Crisil) |
Aditya Birla Housing Finance | 3 years | 7.3064 | 8.50+1.50 | May 21 | AAA (Icra, Crisil) |
Tata Capital Housing Finance | 2 year and 2 months | 7.12 | 15 | May 20 | AAA (Crisil) |
*Size includes base plus greenshoe for some issues
($1 = 85.6020 Indian rupees)
(Reporting by Dharamraj Dhutia; Editing by Sonia Cheema)
Japan's SMBC to take 20% stake in India's Yes Bank
SMBC's stake acquisition in Yes Bank to mark India's largest cross-border banking deal
Deal valued at $1.52 billion, source says, with shares bought from eight existing investors
Deal underscores Japan's push for overseas financial expansion
Updates with deal value in paragraphs 2-3
By Siddhi Nayak and Anton Bridge
MUMBAI/TOKYO, May 9 (Reuters) - Japanese lender Sumitomo Mitsui Banking Corporation (SMBC) has signed a definitive agreement to take a 20% stake in Indian private lender Yes Bank YESB.NS, a deal that marks the largest cross-border merger and acquisition deal in India's financial sector.
The total value of the deal, which involves SMBC buying shares from eight existing shareholders, comes up to 134.8 billion rupees ($1.58 billion), Sumitomo Mitsui Financial Group 8316.T said in a statement.
SMBC, is a unit of Sumitomo Mitsui Financial Group and is Japan's second-biggest bank.
Restrictions on ownership, stricter capital requirements, and state domination of the banking sector have made cross-border deals a rarity across Indian banks. A takeover of troubled Lakshmi Vilas Bank by Singapore-based DBS Group DBSM.SI in 2020 was the last major deal in the sector.
SMBC's stake purchase in Yes Bank, which will make it the largest shareholder in the lender, also marks the latest major overseas acquisition by a Japanese financial institution as they look to secure new sources of growth after years of rock bottom interest rates at home and a shrinking domestic population.
Last month investment bank Nomura 8604.T acquired Macquarie Group's MQG.AX U.S. and European public asset management businesses for $1.8 billion and last December Nippon Life Insurance made Bermuda-based Resolution Life a wholly-owned subsidiary for around $8.2 billion.
As part of the deal, SMBC will acquire a 13.19% stake from State Bank of India SBI.NS, also its largest investor, and an aggregate of 6.81% from Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank Limited and Kotak Mahindra Bank, Yes Bank said in a stock exchange filing.
SBI holds a 24% stake in Yes Bank, as a result of the regulator-led restructuring of the lender in March 2020.
ICICI Bank ICBK.NS, HDFC Bank HDBK.NS, Kotak Mahindra Bank KTKM.NS, Axis Bank AXBK.NS and Life Insurance Corporation of India LIFI.NS together hold an 11.34% stake in Yes Bank.
The transaction is subject to regulatory approvals from the Reserve Bank of India, Competition Commission of India and shareholders of the Bank, Yes Bank said.
SMBC's investment "marks a pivotal step in our next phase of growth," CEO Prashant Kumar said in the release.
SMBC was advised by financial advisors JPMorgan and Jefferies, Yes Bank said.
Reuters had reported this week that SMBC was close to agreement on acquiring a stake in Yes Bank and had received a verbal go-ahead from the central bank.
Shares of Yes Bank closed nearly 10% higher ahead of the announcement on Friday and have gained 2.2% so far this year.
($1 = 85.3990 Indian rupees)
(Reporting by Siddhi Nayak in Mumbai and Anton Bridge in Tokyo
Editing by David Goodman and David Evans)
(([email protected]; x.com/siddhiVnayak;))
SMBC's stake acquisition in Yes Bank to mark India's largest cross-border banking deal
Deal valued at $1.52 billion, source says, with shares bought from eight existing investors
Deal underscores Japan's push for overseas financial expansion
Updates with deal value in paragraphs 2-3
By Siddhi Nayak and Anton Bridge
MUMBAI/TOKYO, May 9 (Reuters) - Japanese lender Sumitomo Mitsui Banking Corporation (SMBC) has signed a definitive agreement to take a 20% stake in Indian private lender Yes Bank YESB.NS, a deal that marks the largest cross-border merger and acquisition deal in India's financial sector.
The total value of the deal, which involves SMBC buying shares from eight existing shareholders, comes up to 134.8 billion rupees ($1.58 billion), Sumitomo Mitsui Financial Group 8316.T said in a statement.
SMBC, is a unit of Sumitomo Mitsui Financial Group and is Japan's second-biggest bank.
Restrictions on ownership, stricter capital requirements, and state domination of the banking sector have made cross-border deals a rarity across Indian banks. A takeover of troubled Lakshmi Vilas Bank by Singapore-based DBS Group DBSM.SI in 2020 was the last major deal in the sector.
SMBC's stake purchase in Yes Bank, which will make it the largest shareholder in the lender, also marks the latest major overseas acquisition by a Japanese financial institution as they look to secure new sources of growth after years of rock bottom interest rates at home and a shrinking domestic population.
Last month investment bank Nomura 8604.T acquired Macquarie Group's MQG.AX U.S. and European public asset management businesses for $1.8 billion and last December Nippon Life Insurance made Bermuda-based Resolution Life a wholly-owned subsidiary for around $8.2 billion.
As part of the deal, SMBC will acquire a 13.19% stake from State Bank of India SBI.NS, also its largest investor, and an aggregate of 6.81% from Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank Limited and Kotak Mahindra Bank, Yes Bank said in a stock exchange filing.
SBI holds a 24% stake in Yes Bank, as a result of the regulator-led restructuring of the lender in March 2020.
ICICI Bank ICBK.NS, HDFC Bank HDBK.NS, Kotak Mahindra Bank KTKM.NS, Axis Bank AXBK.NS and Life Insurance Corporation of India LIFI.NS together hold an 11.34% stake in Yes Bank.
The transaction is subject to regulatory approvals from the Reserve Bank of India, Competition Commission of India and shareholders of the Bank, Yes Bank said.
SMBC's investment "marks a pivotal step in our next phase of growth," CEO Prashant Kumar said in the release.
SMBC was advised by financial advisors JPMorgan and Jefferies, Yes Bank said.
Reuters had reported this week that SMBC was close to agreement on acquiring a stake in Yes Bank and had received a verbal go-ahead from the central bank.
Shares of Yes Bank closed nearly 10% higher ahead of the announcement on Friday and have gained 2.2% so far this year.
($1 = 85.3990 Indian rupees)
(Reporting by Siddhi Nayak in Mumbai and Anton Bridge in Tokyo
Editing by David Goodman and David Evans)
(([email protected]; x.com/siddhiVnayak;))
Street View: India's Axis Bank shows 'sub-optimal' loan growth
** Indian private lender Axis Bank AXBK.NS on Thursday beat fourth-quarter profit estimates and expressed confidence about its retail loan growth improving in the upcoming quarters
** Shares down 3.6% to 1164.60 rupees
MORE-THAN-ANTICIPATED STRESS IN UNSECURED LOANS "MAIN RISK"
** Nomura ("buy", hikes TP to 1450 rupees from 1230 rupees): Loan growth "a tad soft"; pickup will be key
** Emkay Research ("buy", raises TP by ~8% to 1400 rupees): Credit growth remains sub-optimal, more-than-expected stress in unsecured loans main risk
** ICICI Securities ("buy", lifts TP to 1400 rupees from 1320 rupees): Loan growth remains muted, lender instead prioritising margins
** Amidst impending pressure on loan yields, we expect growth to be relatively subdued in the near term, though it could see healthy recovery in CY27 from stable rates and easing liquidity conditions - ICICI
(Reporting by Hritam Mukherjee in Bengaluru)
(([email protected];))
** Indian private lender Axis Bank AXBK.NS on Thursday beat fourth-quarter profit estimates and expressed confidence about its retail loan growth improving in the upcoming quarters
** Shares down 3.6% to 1164.60 rupees
MORE-THAN-ANTICIPATED STRESS IN UNSECURED LOANS "MAIN RISK"
** Nomura ("buy", hikes TP to 1450 rupees from 1230 rupees): Loan growth "a tad soft"; pickup will be key
** Emkay Research ("buy", raises TP by ~8% to 1400 rupees): Credit growth remains sub-optimal, more-than-expected stress in unsecured loans main risk
** ICICI Securities ("buy", lifts TP to 1400 rupees from 1320 rupees): Loan growth remains muted, lender instead prioritising margins
** Amidst impending pressure on loan yields, we expect growth to be relatively subdued in the near term, though it could see healthy recovery in CY27 from stable rates and easing liquidity conditions - ICICI
(Reporting by Hritam Mukherjee in Bengaluru)
(([email protected];))
Axis Bank Q4FY25 Net Interest Margin At 3.97%
April 24 (Reuters) - Axis Bank Ltd AXBK.NS:
Q4FY25 NET INTEREST MARGIN AT 3.97%
Source text: ID:nBSE5p1dyw
Further company coverage: AXBK.NS
(([email protected];;))
April 24 (Reuters) - Axis Bank Ltd AXBK.NS:
Q4FY25 NET INTEREST MARGIN AT 3.97%
Source text: ID:nBSE5p1dyw
Further company coverage: AXBK.NS
(([email protected];;))
India's Axis Bank to consider raising funds via equity, debt
April 15 (Reuters) - India's Axis Bank AXBK.NS will consider raising funds on April 24, the private lender said on Tuesday.
The bank, which will report its earnings for the January–March quarter on the same day, said it will consider the issuance of shares through methods including qualified institutional placement as well as the issuance of debt instruments such as bonds and debentures.
(Reporting by Nishit Navin; Editing by Shreya Biswas)
(([email protected];))
April 15 (Reuters) - India's Axis Bank AXBK.NS will consider raising funds on April 24, the private lender said on Tuesday.
The bank, which will report its earnings for the January–March quarter on the same day, said it will consider the issuance of shares through methods including qualified institutional placement as well as the issuance of debt instruments such as bonds and debentures.
(Reporting by Nishit Navin; Editing by Shreya Biswas)
(([email protected];))
India New Issue-Axis Finance accepts bids for multiple tenor bonds, bankers say
MUMBAI, April 9 (Reuters) - India's Axis Finance has accepted bids worth an aggregate of 6.66 billion rupees (about $77 million) for the sale of bonds maturing in three year and two months and the reissue of March 2030 bonds, three bankers said on Wednesday.
It will pay an annual coupon of 7.7320% on fresh issue and a yield of 7.74% on the reissue, and had invited bids from bankers and investors earlier in the day, they said.
The company did not reply to a Reuters request for comment.
Here is the list of deals reported so far on April 9:
Issuer | Tenure | Coupon (in %) | Issue size (in bln rupees)* | Bidding date | Rating |
Axis Finance | 3 years and 2 months | 7.7320 | 4.65 | April 9 | AAA (India Ratings) |
Axis Finance | 5 years | 7.74 (yield) | 2.01 | April 9 | AAA (India Ratings) |
Bajaj Finance April 2035 reissue | 10 years | 7.55 (yield) | 12.50 | April 8 | AAA (Crisil) |
Bajaj Housing Finance | 10 years | 7.50 | 15 | April 8 | AAA (Crisil) |
LIC Housing Fin Feb 2030 reissue | 4 years and 10 months | 7.20 (yield) | 10 | April 8 | AAA (Crisil, Care) |
Cholamandalam Investment | 7 years | 8.75 | 5 | April 8 | AA+ (Icra, India Ratings) |
L&T Finance | 3 years and 2 months | 7.5934 | 1+4 | April 11 | AAA (India Ratings, Icra) |
L&T Finance | 5 years | To be decided | 1+4 | April 11 | AAA (Care, IcRA) |
*Size includes base plus greenshoe for some issues
($1 = 86.5430 Indian rupees)
(Reporting by Dharamraj Dhutia; Editing by Savio D'Souza)
MUMBAI, April 9 (Reuters) - India's Axis Finance has accepted bids worth an aggregate of 6.66 billion rupees (about $77 million) for the sale of bonds maturing in three year and two months and the reissue of March 2030 bonds, three bankers said on Wednesday.
It will pay an annual coupon of 7.7320% on fresh issue and a yield of 7.74% on the reissue, and had invited bids from bankers and investors earlier in the day, they said.
The company did not reply to a Reuters request for comment.
Here is the list of deals reported so far on April 9:
Issuer | Tenure | Coupon (in %) | Issue size (in bln rupees)* | Bidding date | Rating |
Axis Finance | 3 years and 2 months | 7.7320 | 4.65 | April 9 | AAA (India Ratings) |
Axis Finance | 5 years | 7.74 (yield) | 2.01 | April 9 | AAA (India Ratings) |
Bajaj Finance April 2035 reissue | 10 years | 7.55 (yield) | 12.50 | April 8 | AAA (Crisil) |
Bajaj Housing Finance | 10 years | 7.50 | 15 | April 8 | AAA (Crisil) |
LIC Housing Fin Feb 2030 reissue | 4 years and 10 months | 7.20 (yield) | 10 | April 8 | AAA (Crisil, Care) |
Cholamandalam Investment | 7 years | 8.75 | 5 | April 8 | AA+ (Icra, India Ratings) |
L&T Finance | 3 years and 2 months | 7.5934 | 1+4 | April 11 | AAA (India Ratings, Icra) |
L&T Finance | 5 years | To be decided | 1+4 | April 11 | AAA (Care, IcRA) |
*Size includes base plus greenshoe for some issues
($1 = 86.5430 Indian rupees)
(Reporting by Dharamraj Dhutia; Editing by Savio D'Souza)
India New Issue-Axis Finance to issue multiple tenor bonds, bankers say
MUMBAI, April 8 (Reuters) - India's Axis Finance plans to raise 14 billion rupees ($162.99 million), including a greenshoe option of 9 billion rupees through the sale of bonds maturing in three year and two months and in five years, three bankers said on Tuesday.
It will pay an annual coupon of 7.75% on each issue and has invited bids from bankers and investors on Wednesday, they said.
The company did not reply to a Reuters request for comment.
Here is the list of deals reported so far on April 8:
Issuer | Tenure | Coupon (in %) | Issue size (in bln rupees)* | Bidding date | Rating |
Axis Finance | 3 years and 2 months | 7.75 | 3+5 | April 9 | AAA (India Ratings) |
Axis Finance | 5 years | 7.75 | 2+4 | April 9 | AAA (India Ratings) |
Tata Capital July 2028 reissue | 3 years and 3 months | 7.6005 (yield) | 11.75 | April 7 | AAA (Crisil, Icra) |
Tata Capital | 5 years | 7.62 | 15 | April 7 | AAA (Crisil, Icra) |
*Size includes base plus greenshoe for some issues
($1 = 85.8970 Indian rupees)
(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Nivedita Bhattacharjee)
MUMBAI, April 8 (Reuters) - India's Axis Finance plans to raise 14 billion rupees ($162.99 million), including a greenshoe option of 9 billion rupees through the sale of bonds maturing in three year and two months and in five years, three bankers said on Tuesday.
It will pay an annual coupon of 7.75% on each issue and has invited bids from bankers and investors on Wednesday, they said.
The company did not reply to a Reuters request for comment.
Here is the list of deals reported so far on April 8:
Issuer | Tenure | Coupon (in %) | Issue size (in bln rupees)* | Bidding date | Rating |
Axis Finance | 3 years and 2 months | 7.75 | 3+5 | April 9 | AAA (India Ratings) |
Axis Finance | 5 years | 7.75 | 2+4 | April 9 | AAA (India Ratings) |
Tata Capital July 2028 reissue | 3 years and 3 months | 7.6005 (yield) | 11.75 | April 7 | AAA (Crisil, Icra) |
Tata Capital | 5 years | 7.62 | 15 | April 7 | AAA (Crisil, Icra) |
*Size includes base plus greenshoe for some issues
($1 = 85.8970 Indian rupees)
(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Nivedita Bhattacharjee)
India's Axis Bank, J.P. Morgan roll out anytime dollar payments for clients
MUMBAI, March 27 (Reuters) - India's Axis Bank has partnered with J.P. Morgan to offer real-time U.S. dollar payment capabilities to commercial clients in the country, facilitated by Kinexys, the U.S-based lender's blockchain and digital assets unit.
This is the first instance where an Indian company will have the flexibility to make or receive dollar payments at any time, J.P. Morgan said in a statement on Thursday.
Axis Bank will deliver the 24/7 dollar clearing capability for clients out of Gujarat International Finance Tec-City, or GIFT city, an international financial services center.
The collaboration with Kinexys will offer "significant value" to clients by streamlining payments, unlocking liquidity and adding further optionality on cross-border payments, Neeraj Gambhir, group executive & head - treasury, markets & wholesale banking products, at Axis Bank said.
Currently, companies can make cross-border payments that are settled on the same day.
Naveen Mallela, global co-head at Kinexys, illustrated the anytime payment capability by saying that Indian companies can now make dollar payments to Middle Eastern clients on Sundays, which are standard working days in that region.
"The ability to move money 24X7 without cutoffs essentially reduces the cost of liquidity for processing of payments. Furthermore, the payment rails are designed to be completely no-deduct which will ensure full preservation of payment amount until it reaches the final beneficiary," Mallela said.
(Reporting by Nimesh Vora; Editing by Sonia Cheema)
(([email protected]; +91 22 6921 7896;))
MUMBAI, March 27 (Reuters) - India's Axis Bank has partnered with J.P. Morgan to offer real-time U.S. dollar payment capabilities to commercial clients in the country, facilitated by Kinexys, the U.S-based lender's blockchain and digital assets unit.
This is the first instance where an Indian company will have the flexibility to make or receive dollar payments at any time, J.P. Morgan said in a statement on Thursday.
Axis Bank will deliver the 24/7 dollar clearing capability for clients out of Gujarat International Finance Tec-City, or GIFT city, an international financial services center.
The collaboration with Kinexys will offer "significant value" to clients by streamlining payments, unlocking liquidity and adding further optionality on cross-border payments, Neeraj Gambhir, group executive & head - treasury, markets & wholesale banking products, at Axis Bank said.
Currently, companies can make cross-border payments that are settled on the same day.
Naveen Mallela, global co-head at Kinexys, illustrated the anytime payment capability by saying that Indian companies can now make dollar payments to Middle Eastern clients on Sundays, which are standard working days in that region.
"The ability to move money 24X7 without cutoffs essentially reduces the cost of liquidity for processing of payments. Furthermore, the payment rails are designed to be completely no-deduct which will ensure full preservation of payment amount until it reaches the final beneficiary," Mallela said.
(Reporting by Nimesh Vora; Editing by Sonia Cheema)
(([email protected]; +91 22 6921 7896;))
India New Issue-Axis Finance accepts bids for 5-year bonds, bankers say
MUMBAI, March 26 (Reuters) - India's Axis Finance has accepted bids worth 5.35 billion rupees ($62.4 million) for the sale of bonds maturing in 5 years, three bankers said on Wednesday.
It will pay an annual coupon of 7.97% on this issue and had invited bids from bankers and investors earlier in the day, they said.
The company did not reply to a Reuters request for comment.
Here is the list of deals reported so far on March 26:
Issuer | Tenure | Coupon (in %) | Issue size (in bln rupees)* | Bidding date | Rating |
Axis Finance | 5 years | 7.97 | 5.35 | March 26 | AAA (India Ratings) |
IIFCL | 7 years | 7.28 | 10 | March 26 | AAA (Care, India Ratings) |
IRFC | 10 years | 7.17 | 30 | March 26 | AAA (Crisil, Icra, Care) |
HDB Financial | 2 years | To be decided | 2+2 | March 27 | AAA (Crisil, Care) |
HDB Financial | 2 years and 8 months | To be decided | 1+4 | March 27 | AAA (Crisil, Care) |
NaBFID | 10 years | To be decided | 10+20 | March 27 | AAA (Crisil, Icra) |
IndiGrid Infra Trust | 3-year and 6 months | To be decided | 5 | March 26 | AAA (Icra, Crisil) |
IndiGrid Infra Trust | 22 years | To be decided | 0.7 | March 26 | AAA (Icra, Crisil) |
IndiGrid Infra Trust | 22 years | To be decided | 6.3 | March 26 | AAA (Icra, Crisil) |
Cholamandalam Investment | 2 years | 8.19 | 11.75 | March 25 | AA+ (Icra, India Ratings) |
*Size includes base plus greenshoe for some issues
($1 = 85.7050 Indian rupees)
(Reporting by Dharamraj Dhutia; Editing by Mrigank Dhaniwala)
MUMBAI, March 26 (Reuters) - India's Axis Finance has accepted bids worth 5.35 billion rupees ($62.4 million) for the sale of bonds maturing in 5 years, three bankers said on Wednesday.
It will pay an annual coupon of 7.97% on this issue and had invited bids from bankers and investors earlier in the day, they said.
The company did not reply to a Reuters request for comment.
Here is the list of deals reported so far on March 26:
Issuer | Tenure | Coupon (in %) | Issue size (in bln rupees)* | Bidding date | Rating |
Axis Finance | 5 years | 7.97 | 5.35 | March 26 | AAA (India Ratings) |
IIFCL | 7 years | 7.28 | 10 | March 26 | AAA (Care, India Ratings) |
IRFC | 10 years | 7.17 | 30 | March 26 | AAA (Crisil, Icra, Care) |
HDB Financial | 2 years | To be decided | 2+2 | March 27 | AAA (Crisil, Care) |
HDB Financial | 2 years and 8 months | To be decided | 1+4 | March 27 | AAA (Crisil, Care) |
NaBFID | 10 years | To be decided | 10+20 | March 27 | AAA (Crisil, Icra) |
IndiGrid Infra Trust | 3-year and 6 months | To be decided | 5 | March 26 | AAA (Icra, Crisil) |
IndiGrid Infra Trust | 22 years | To be decided | 0.7 | March 26 | AAA (Icra, Crisil) |
IndiGrid Infra Trust | 22 years | To be decided | 6.3 | March 26 | AAA (Icra, Crisil) |
Cholamandalam Investment | 2 years | 8.19 | 11.75 | March 25 | AA+ (Icra, India Ratings) |
*Size includes base plus greenshoe for some issues
($1 = 85.7050 Indian rupees)
(Reporting by Dharamraj Dhutia; Editing by Mrigank Dhaniwala)
India New Issue-Axis Finance to issue 5-year bonds, bankers say
MUMBAI, March 25 (Reuters) - India's Axis Finance plans to raise 10 billion rupees ($116.83 million), including a greenshoe option of 5 billion rupees, through the sale of bonds maturing in 5 years, three bankers said.
It has invited coupon and commitment bids for the issue on Wednesday, they said.
The company did not reply to a Reuters request for comment.
Here is the list of deals reported so far on March 25:
Issuer | Tenure | Coupon (in %) | Issue size (in bln rupees)* | Bidding date | Rating |
Axis Finance | 5 years | To be decided | 5+5 | March 26 | AAA (India Ratings) |
Toyota Financial Services | 2 years and 11 months | To be decided | 5 | March 26 | AAA (Icra) |
IIFCL | 7 years | To be decided | 2.50+7.50 | March 26 | AAA (Care, India Ratings) |
IRFC | 10 year and 1 month | To be decided | 5+25 | March 26 | AAA (Crisil, Icra, Care) |
Cholamandalam Investment | 2 years | To be decided | 10+2 | March 25 | AA+ (Icra, India Ratings) |
*Size includes base plus greenshoe for some issues
($1 = 85.5950 Indian rupees)
(Reporting by Khushi Malhotra and Dharamraj Dhutia; Editing by Janane Venkatraman)
((Khushi [email protected]; [email protected]))
MUMBAI, March 25 (Reuters) - India's Axis Finance plans to raise 10 billion rupees ($116.83 million), including a greenshoe option of 5 billion rupees, through the sale of bonds maturing in 5 years, three bankers said.
It has invited coupon and commitment bids for the issue on Wednesday, they said.
The company did not reply to a Reuters request for comment.
Here is the list of deals reported so far on March 25:
Issuer | Tenure | Coupon (in %) | Issue size (in bln rupees)* | Bidding date | Rating |
Axis Finance | 5 years | To be decided | 5+5 | March 26 | AAA (India Ratings) |
Toyota Financial Services | 2 years and 11 months | To be decided | 5 | March 26 | AAA (Icra) |
IIFCL | 7 years | To be decided | 2.50+7.50 | March 26 | AAA (Care, India Ratings) |
IRFC | 10 year and 1 month | To be decided | 5+25 | March 26 | AAA (Crisil, Icra, Care) |
Cholamandalam Investment | 2 years | To be decided | 10+2 | March 25 | AA+ (Icra, India Ratings) |
*Size includes base plus greenshoe for some issues
($1 = 85.5950 Indian rupees)
(Reporting by Khushi Malhotra and Dharamraj Dhutia; Editing by Janane Venkatraman)
((Khushi [email protected]; [email protected]))
PayPal-backed Mintoak strikes India's first e-rupee related deal, worth $3.5 million, sources say
By Ashwin Manikandan
NEW DELHI, March 4 (Reuters) - Indian startup Mintoak, which provides merchant payment services to lenders, said on Tuesday it has bought Digiledge, marking the first acquisition in the nascent central bank digital currency space in a deal that sources said was worth around $3.5 million.
The Reserve Bank of India started a pilot for the CBDC, or e-rupee, a digital alternative to physical currency, in December 2022, and last April, it expanded the scope of transactions to payment firms from having limited it to just banks initially.
PayPal PYPL.O and HDFC Bank HDBK.NS backed Mintoak has completed the acquisition of Digiledge, which specialises in CBDC and bill payments services, said two sources aware of the matter, declining to be identified as they are not authorised to speak with the media.
The deal will enable Mintoak's partner banks, which include HDFC Bank, Axis Bank AXBK.NS and SBI SBI.NS, to offer more comprehensive CBDC-related payment solutions to their clients, Mumbai-based Mintoak said.
"By adding Digiledge's bill payments and CBDC capabilities, we are making it easier for merchant acquirers to grow and help more small and medium enterprises access digital tools and financial services," Mintoak CEO Raman Khanduja said.
In January, Cred and MobiKwik ONEM.NS became the first fintech platforms to give customers access to the CBDC.
Alphabet's GOOGL.O Google Pay, Walmart-backed WMT.N PhonePe PHOP.NS and Amazon Pay are among the payment firms seeking to join the pilot, Reuters reported in August 2024.
(Reporting by Ashwin Manikandan; Editing by Savio D'Souza)
By Ashwin Manikandan
NEW DELHI, March 4 (Reuters) - Indian startup Mintoak, which provides merchant payment services to lenders, said on Tuesday it has bought Digiledge, marking the first acquisition in the nascent central bank digital currency space in a deal that sources said was worth around $3.5 million.
The Reserve Bank of India started a pilot for the CBDC, or e-rupee, a digital alternative to physical currency, in December 2022, and last April, it expanded the scope of transactions to payment firms from having limited it to just banks initially.
PayPal PYPL.O and HDFC Bank HDBK.NS backed Mintoak has completed the acquisition of Digiledge, which specialises in CBDC and bill payments services, said two sources aware of the matter, declining to be identified as they are not authorised to speak with the media.
The deal will enable Mintoak's partner banks, which include HDFC Bank, Axis Bank AXBK.NS and SBI SBI.NS, to offer more comprehensive CBDC-related payment solutions to their clients, Mumbai-based Mintoak said.
"By adding Digiledge's bill payments and CBDC capabilities, we are making it easier for merchant acquirers to grow and help more small and medium enterprises access digital tools and financial services," Mintoak CEO Raman Khanduja said.
In January, Cred and MobiKwik ONEM.NS became the first fintech platforms to give customers access to the CBDC.
Alphabet's GOOGL.O Google Pay, Walmart-backed WMT.N PhonePe PHOP.NS and Amazon Pay are among the payment firms seeking to join the pilot, Reuters reported in August 2024.
(Reporting by Ashwin Manikandan; Editing by Savio D'Souza)
Axis Bank Is Said To Weigh Majority Stake Sale Of $1 Billion Shadow Bank Unit - Bloomberg News
Feb 25 (Reuters) -
AXIS IS SAID TO WEIGH MAJORITY STAKE SALE OF $1 BILLION SHADOW BANK UNIT - BLOOMBERG NEWS
Source text: https://tinyurl.com/24njxygt
Further company coverage: AXBK.NS
(([email protected];))
Feb 25 (Reuters) -
AXIS IS SAID TO WEIGH MAJORITY STAKE SALE OF $1 BILLION SHADOW BANK UNIT - BLOOMBERG NEWS
Source text: https://tinyurl.com/24njxygt
Further company coverage: AXBK.NS
(([email protected];))
Max Financial Services approves listing of Axis Max Life via merger
BENGALURU, Feb 4 (Reuters) - India's Max Financial Services MAXI.NS said on Tuesday it has approved the listing of its unit, Axis Max Life, by merging with the insurer.
The move comes after the country's insurance regulator sought a public listing roadmap from Axis Max Life, the financial services company said.
Max Financial, which holds nearly an 81% stake in Axis Max Life, said it will initiate the process for the insurer's listing once there is clarity on the law allowing such mergers.
(Reporting by Nishit Navin in Bengaluru; Editing by Shreya Biswas)
(([email protected];))
BENGALURU, Feb 4 (Reuters) - India's Max Financial Services MAXI.NS said on Tuesday it has approved the listing of its unit, Axis Max Life, by merging with the insurer.
The move comes after the country's insurance regulator sought a public listing roadmap from Axis Max Life, the financial services company said.
Max Financial, which holds nearly an 81% stake in Axis Max Life, said it will initiate the process for the insurer's listing once there is clarity on the law allowing such mergers.
(Reporting by Nishit Navin in Bengaluru; Editing by Shreya Biswas)
(([email protected];))
BREAKINGVIEWS-India’s banks are half-ready for a credit crunch
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
By Shritama Bose
MUMBAI, Jan 23 (Reuters Breakingviews) - A small-loan crisis is creeping up on India’s banks. Bad debt inched up at the $146 billion HDFC Bank HDBK.NS and other private lenders in the three months to the end of December, and the central bank recently warned of a deep rot in small loans. The $2 trillion banking system is better prepared for an asset quality crisis than a decade ago, but a stalling economy could batter its defences.
HDFC’s gross bad loan ratio rose six basis points from the end of September to 1.42%. Axis Bank AXBK.NS doubled its provisions and contingencies from the same three-month period in the previous year to account for defaults on unsecured personal loans, and Kotak Mahindra Bank KTKM.NS raised them by 37%.
India’s banks learnt some lessons from the last blowup in 2015-16, when a string of chunky project loans left their balance sheets bleeding. At 16.7%, their capital as a share of risk weighted assets is nearly four percentage points higher than in 2014. The share of the top 100 borrowers in outstanding loans is down to 15% from 18%. Bad loans are at a 12-year low of 2.6%. And the Reserve Bank of India mandates Indian lenders hold a 2.5% buffer above the 9% minimum capital requirement under Basel III norms. It tightened the screws on unsecured loans in November 2023 to curb excessive risk-taking.
Macroeconomic disruption could mess with that. An RBI stress test revealed that in an extreme scenario where GDP growth slows to around 3% and inflation rises to 7.8%, four banks may breach the minimum capital requirement of 9%.
Mid-sized private banks are prone to that risk. In 2020, Yes Bank’s YESB.NS rivals rescued it from near-failure with cash infusions and months later, Singapore's DBS DBSM.SI acquired another capital-starved lender based in southern India. That’s making markets jittery about private lenders like RBL RATB.NS and IndusInd Bank INBK.NS which specialise in microloans of under $500, the segment where the stress is deepest. The finance chief of IndusInd, which reported surging provisions and a profit drop in the September quarter, resigned on Friday.
So far the risk is limited to only a slice of loans -- unsecured loans account for a quarter of total bank credit. To contain it, banks are easing off on new lending. That in turn could slow GDP growth further. It’s a feedback loop India can ill afford.
Follow @ShritamaBose on X
CONTEXT NEWS
HDFC Bank on Jan. 22 reported consolidated net profit of $2.04 billion for the three months to Dec. 31, 2% higher than in the same period a year earlier. The bank’s gross non-performing asset ratio rose six basis points from the end of September to 1.42%.
IndusInd Bank on Jan. 18 said Chief Financial Officer Gobind Jain resigned from the position on the previous day to pursue other professional opportunities.
Graphic: Indian banks have grown their capital base https://reut.rs/4gbiRT1
(Editing by Antony Currie and Ujjaini Dutta)
((For previous columns by the author, Reuters customers can click on BOSE/
[email protected]))
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
By Shritama Bose
MUMBAI, Jan 23 (Reuters Breakingviews) - A small-loan crisis is creeping up on India’s banks. Bad debt inched up at the $146 billion HDFC Bank HDBK.NS and other private lenders in the three months to the end of December, and the central bank recently warned of a deep rot in small loans. The $2 trillion banking system is better prepared for an asset quality crisis than a decade ago, but a stalling economy could batter its defences.
HDFC’s gross bad loan ratio rose six basis points from the end of September to 1.42%. Axis Bank AXBK.NS doubled its provisions and contingencies from the same three-month period in the previous year to account for defaults on unsecured personal loans, and Kotak Mahindra Bank KTKM.NS raised them by 37%.
India’s banks learnt some lessons from the last blowup in 2015-16, when a string of chunky project loans left their balance sheets bleeding. At 16.7%, their capital as a share of risk weighted assets is nearly four percentage points higher than in 2014. The share of the top 100 borrowers in outstanding loans is down to 15% from 18%. Bad loans are at a 12-year low of 2.6%. And the Reserve Bank of India mandates Indian lenders hold a 2.5% buffer above the 9% minimum capital requirement under Basel III norms. It tightened the screws on unsecured loans in November 2023 to curb excessive risk-taking.
Macroeconomic disruption could mess with that. An RBI stress test revealed that in an extreme scenario where GDP growth slows to around 3% and inflation rises to 7.8%, four banks may breach the minimum capital requirement of 9%.
Mid-sized private banks are prone to that risk. In 2020, Yes Bank’s YESB.NS rivals rescued it from near-failure with cash infusions and months later, Singapore's DBS DBSM.SI acquired another capital-starved lender based in southern India. That’s making markets jittery about private lenders like RBL RATB.NS and IndusInd Bank INBK.NS which specialise in microloans of under $500, the segment where the stress is deepest. The finance chief of IndusInd, which reported surging provisions and a profit drop in the September quarter, resigned on Friday.
So far the risk is limited to only a slice of loans -- unsecured loans account for a quarter of total bank credit. To contain it, banks are easing off on new lending. That in turn could slow GDP growth further. It’s a feedback loop India can ill afford.
Follow @ShritamaBose on X
CONTEXT NEWS
HDFC Bank on Jan. 22 reported consolidated net profit of $2.04 billion for the three months to Dec. 31, 2% higher than in the same period a year earlier. The bank’s gross non-performing asset ratio rose six basis points from the end of September to 1.42%.
IndusInd Bank on Jan. 18 said Chief Financial Officer Gobind Jain resigned from the position on the previous day to pursue other professional opportunities.
Graphic: Indian banks have grown their capital base https://reut.rs/4gbiRT1
(Editing by Antony Currie and Ujjaini Dutta)
((For previous columns by the author, Reuters customers can click on BOSE/
[email protected]))
Signs of rising asset quality stress spook Indian bank stocks
By Siddhi Nayak
MUMBAI, Jan 20 (Reuters) - The stock prices of Indian private lenders that have reported an increase in bad loans in their personal loans and micro-credit businesses are bearing the brunt of investors' fears of a U-turn in the asset-quality cycle for the country's banks.
RBL Bank's shares RATB.NS fell as much as 5.8% on Monday after the lender reported a near 28% sequential jump in quarterly slippages, or loans that were classified as non-performing for the first time.
Axis Bank AXBK.NS, India's third-largest private bank, forecast retail asset quality would take a few more quarters to normalise. Its stock sank 4.5% on Friday and dropped a further 1.1% on Monday.
Kotak Mahindra Bank KTKM.NS, however, gained 9% after reporting lower slippages than the previous quarter, although it also warned that the stress in parts of its loan book would persist.
Indian banks are grappling with rising bad loans, particularly in sectors such as microfinance, credit cards and personal loans. Analysts have attributed this to over-leveraging and an increase in loans outstanding per borrower.
The rise in delinquencies has forced lenders to allocate more funds for potential losses and pare back loan growth in these segments, which, in turn, hurts profitability.
"The sign of stress that is visible across microfinance and unsecured loans is a mild symptom of a tougher macro environment," said Kranthi Bathini, director of equity strategy at Wealthmills Securities.
"That is largely because banks are conservative towards loan growth, which coupled with tighter liquidity conditions, could mean that an economic recovery could be prolonged."
RBL Bank -- over 50% of whose slippages came from credit cards and microfinance loans -- should start seeing a normalisation in asset quality in the unsecured segment latest by July-September, CEO R Subramaniakumar said on a post-earnings call.
Kotak's gross non-performing assets ratio worsened slightly at the end of December and the lender said it would be cautious about unsecured loans going forward.
The stress "will take a couple of quarters to normalise," starting only from April-June, CEO Ashok Vaswani said at a media conference on Saturday.
Banks' gross NPA (non-performing asset) ratio could rise to 3% by the end of March 2026, from a 12-year low of 2.6% last September, the central bank said in its Financial Stability Report in December.
(Reporting by Siddhi Nayak; Editing by Savio D'Souza)
(([email protected]; +91 22 6921 7848; X: https://twitter.com/siddhiVnayak))
By Siddhi Nayak
MUMBAI, Jan 20 (Reuters) - The stock prices of Indian private lenders that have reported an increase in bad loans in their personal loans and micro-credit businesses are bearing the brunt of investors' fears of a U-turn in the asset-quality cycle for the country's banks.
RBL Bank's shares RATB.NS fell as much as 5.8% on Monday after the lender reported a near 28% sequential jump in quarterly slippages, or loans that were classified as non-performing for the first time.
Axis Bank AXBK.NS, India's third-largest private bank, forecast retail asset quality would take a few more quarters to normalise. Its stock sank 4.5% on Friday and dropped a further 1.1% on Monday.
Kotak Mahindra Bank KTKM.NS, however, gained 9% after reporting lower slippages than the previous quarter, although it also warned that the stress in parts of its loan book would persist.
Indian banks are grappling with rising bad loans, particularly in sectors such as microfinance, credit cards and personal loans. Analysts have attributed this to over-leveraging and an increase in loans outstanding per borrower.
The rise in delinquencies has forced lenders to allocate more funds for potential losses and pare back loan growth in these segments, which, in turn, hurts profitability.
"The sign of stress that is visible across microfinance and unsecured loans is a mild symptom of a tougher macro environment," said Kranthi Bathini, director of equity strategy at Wealthmills Securities.
"That is largely because banks are conservative towards loan growth, which coupled with tighter liquidity conditions, could mean that an economic recovery could be prolonged."
RBL Bank -- over 50% of whose slippages came from credit cards and microfinance loans -- should start seeing a normalisation in asset quality in the unsecured segment latest by July-September, CEO R Subramaniakumar said on a post-earnings call.
Kotak's gross non-performing assets ratio worsened slightly at the end of December and the lender said it would be cautious about unsecured loans going forward.
The stress "will take a couple of quarters to normalise," starting only from April-June, CEO Ashok Vaswani said at a media conference on Saturday.
Banks' gross NPA (non-performing asset) ratio could rise to 3% by the end of March 2026, from a 12-year low of 2.6% last September, the central bank said in its Financial Stability Report in December.
(Reporting by Siddhi Nayak; Editing by Savio D'Souza)
(([email protected]; +91 22 6921 7848; X: https://twitter.com/siddhiVnayak))
Infosys, Axis Bank drive losses on Indian benchmarks
** India's NSE Nifty 50 .NSEI and BSE Sensex .BSESN benchmarks drop 0.5% each, Axis Bank and Infosys lead losses
** Private lender Axis Bank AXBK.NS falls 5% after quarterly profit misses market estimates due to slower loan growth
** AXBK leads decline in financials .NIFTYFIN and private banks .NIFPVTBANK; both down 1.5% and 2.3%, respectively
** India's No. 2 IT firm Infosys INFY.NS sheds 5.5%, dragging IT index .NIFTYIT 2.5% lower on analyst concerns about "quality" of December-quarter results
** INFY, AXBK are top Nifty 50 laggards
** In contrast, Reliance Industries RELI.NS - second-heaviest stock on benchmarks - gains 2.5% on beating Q3 profit estimates
** RELI top gainer on Nifty 50
** Broader smallcaps .NIFSMCP100 shed 0.3%, midcaps .NIFMDCP100 trade flat
(Reporting by Bharath Rajeswaran in Bengaluru)
(([email protected]; +91 9769003463;))
** India's NSE Nifty 50 .NSEI and BSE Sensex .BSESN benchmarks drop 0.5% each, Axis Bank and Infosys lead losses
** Private lender Axis Bank AXBK.NS falls 5% after quarterly profit misses market estimates due to slower loan growth
** AXBK leads decline in financials .NIFTYFIN and private banks .NIFPVTBANK; both down 1.5% and 2.3%, respectively
** India's No. 2 IT firm Infosys INFY.NS sheds 5.5%, dragging IT index .NIFTYIT 2.5% lower on analyst concerns about "quality" of December-quarter results
** INFY, AXBK are top Nifty 50 laggards
** In contrast, Reliance Industries RELI.NS - second-heaviest stock on benchmarks - gains 2.5% on beating Q3 profit estimates
** RELI top gainer on Nifty 50
** Broader smallcaps .NIFSMCP100 shed 0.3%, midcaps .NIFMDCP100 trade flat
(Reporting by Bharath Rajeswaran in Bengaluru)
(([email protected]; +91 9769003463;))
Axis Bank Q3 Net Profit 63.04 Bln Rupees
Jan 16 (Reuters) - Axis Bank Ltd AXBK.NS:
Q3 NET PROFIT 63.04 BILLION RUPEES; IBES PROFIT EST. 65.16 BILLION RUPEES
Q3 GROSS NPA 1.46%
Q3 INTEREST EARNED 309.54 BLN RUPEES
Q3 PROVISIONS AND CONTINGENCIES 21.56 BILLION RUPEES
Q3 NET INTEREST INCOME 136.06 BILLION RUPEES - REUTERS CALCULATION
Source text: [ID:]
Further company coverage: AXBK.NS
(([email protected];;))
Jan 16 (Reuters) - Axis Bank Ltd AXBK.NS:
Q3 NET PROFIT 63.04 BILLION RUPEES; IBES PROFIT EST. 65.16 BILLION RUPEES
Q3 GROSS NPA 1.46%
Q3 INTEREST EARNED 309.54 BLN RUPEES
Q3 PROVISIONS AND CONTINGENCIES 21.56 BILLION RUPEES
Q3 NET INTEREST INCOME 136.06 BILLION RUPEES - REUTERS CALCULATION
Source text: [ID:]
Further company coverage: AXBK.NS
(([email protected];;))
Reliance Infrastructure Unit Receives Notices From Axis Bank And IDFC First Bank
Dec 27 (Reuters) - Reliance Infrastructure Ltd RLIN.NS:
RELIANCE INFRASTRUCTURE - UNIT RECEIVES NOTICES FROM AXIS BANK AND IDFC FIRST BANK
RELIANCE INFRASTRUCTURE LTD - NOTICES INVOKE RIGHT OF SUBSTITUTION UNDER CONCESSION AGREEMENT
RELIANCE INFRASTRUCTURE LTD - NOTICES CITE ALLEGED DSRA DEFAULTS BY UNIT
RELIANCE INFRASTRUCTURE - FINANCIAL IMPACT ON CO UNDETERMINED AT THIS STAGE
Source text: ID:nBSE3kWTMJ
Further company coverage: RLIN.NS
(([email protected];;))
Dec 27 (Reuters) - Reliance Infrastructure Ltd RLIN.NS:
RELIANCE INFRASTRUCTURE - UNIT RECEIVES NOTICES FROM AXIS BANK AND IDFC FIRST BANK
RELIANCE INFRASTRUCTURE LTD - NOTICES INVOKE RIGHT OF SUBSTITUTION UNDER CONCESSION AGREEMENT
RELIANCE INFRASTRUCTURE LTD - NOTICES CITE ALLEGED DSRA DEFAULTS BY UNIT
RELIANCE INFRASTRUCTURE - FINANCIAL IMPACT ON CO UNDETERMINED AT THIS STAGE
Source text: ID:nBSE3kWTMJ
Further company coverage: RLIN.NS
(([email protected];;))
India's Reliance Infra, Axis Bank fall after contempt notice from apex court
** Shares of Reliance Infrastructure RLIN.NS and Axis Bank AXBK.NS drop 2.3% and 1.5%, respectively
** RLIN said India's Supreme Court issues show-cause notice to co's unit, Delhi Airport Metro Express Pvt Ltd, and Managing Director of AXBK
** Notice from Supreme Court asks why contempt proceedings should not be initiated against them for violation of directions contained in an April 2024 judgment
** RLIN said its unit will take "appropriate steps to protect its interest" in the matter, financial implications are unascertainable at this stage
** Axis Bank did not immediately respond to a Reuters request for comment on the matter
** RLIN stock on track to log first weekly loss in three; AXBK shares extend losing streak for a fifth straight session
** YTD, RLIN has risen 37%, AXBK has gained 2.4%
(Reporting by Hritam Mukherjee in Bengaluru)
(([email protected];))
** Shares of Reliance Infrastructure RLIN.NS and Axis Bank AXBK.NS drop 2.3% and 1.5%, respectively
** RLIN said India's Supreme Court issues show-cause notice to co's unit, Delhi Airport Metro Express Pvt Ltd, and Managing Director of AXBK
** Notice from Supreme Court asks why contempt proceedings should not be initiated against them for violation of directions contained in an April 2024 judgment
** RLIN said its unit will take "appropriate steps to protect its interest" in the matter, financial implications are unascertainable at this stage
** Axis Bank did not immediately respond to a Reuters request for comment on the matter
** RLIN stock on track to log first weekly loss in three; AXBK shares extend losing streak for a fifth straight session
** YTD, RLIN has risen 37%, AXBK has gained 2.4%
(Reporting by Hritam Mukherjee in Bengaluru)
(([email protected];))
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What does Axis Bank do?
Axis Bank offers the entire spectrum of financial services to customer segments covering Large and Mid-Corporates, MSME, Agriculture and Retail Businesses. The bank’s integrated business lines offer a comprehensive suite of customised financial solutions to individuals, businesses, and institutions across India. This unified approach leverages digital innovation, domain expertise, and a strong physical presence to holistically serve customers through every stage of its financial journey.
Who are the competitors of Axis Bank?
Axis Bank major competitors are Kotak Mahindra Bank, IDFC First Bank, Yes Bank, Indusind Bank, AU Small Fin. Bank, Federal Bank, Bandhan Bank. Market Cap of Axis Bank is ₹3,35,005 Crs. While the median market cap of its peers are ₹60,635 Crs.
Is Axis Bank financially stable compared to its competitors?
Axis Bank seems to be financially stable compared to its competitors. The probability of it going bankrupt or facing a financial crunch seem to be lower than its immediate competitors.
Does Axis Bank pay decent dividends?
The company seems to be paying a very low dividend. Investors need to see where the company is allocating its profits. Axis Bank latest dividend payout ratio is 1.1% and 3yr average dividend payout ratio is 1.71%
How has Axis Bank allocated its funds?
Company has been allocating majority of new resources to productive uses like loans. However relatively unproductive allocation like cash and Gov Securities has also increased.
How strong is Axis Bank balance sheet?
The companies balance sheet of Axis Bank is weak, but was strong historically.
Is the profitablity of Axis Bank improving?
The profit is oscillating. The profit of Axis Bank is ₹27,922 Crs for TTM, ₹28,055 Crs for Mar 2025 and ₹26,386 Crs for Mar 2024.
Is Axis Bank stock expensive?
Axis Bank is not expensive. Latest PE of Axis Bank is 12.02 while 3 year average PE is 20.12. Also latest Price to Book of Axis Bank is 1.73 while 3yr average is 2.07.
Has the share price of Axis Bank grown faster than its competition?
Axis Bank has given better returns compared to its competitors. Axis Bank has grown at ~7.95% over the last 7yrs while peers have grown at a median rate of 5.78%
Is the promoter bullish about Axis Bank?
Promoters seem not to be bullish about the company and have been selling shares in the open market. Latest quarter promoter holding in Axis Bank is 8.17% and last quarter promoter holding is 8.18%
Are mutual funds buying/selling Axis Bank?
The mutual fund holding of Axis Bank is increasing. The current mutual fund holding in Axis Bank is 32.54% while previous quarter holding is 32.02%.