Axis Bank was down 4% to Rs 515 in opening deals on the BSE, after the bank reported 21% year on year (YoY) decline in net profit at Rs 1,556 crore for the quarter ended June 30, 2016 (Q1FY17), due to higher provisioning for bad loans. The bank had registered a profit of Rs 1,978 crore in the same quarter last fiscal.

Gross non-performing assets (GNPAs) increased to 2.54% of the total in the quarter ended June, as compared to 1.67% in March quarter.

Axis Bank, the country’s third largest private sector lender, had a 21 per cent decline in net profit in the June quarter to Rs 1,556 crore.

As in this one, there was a dip in the March quarter, too, as bad loans and provisioning for these had increased. Gross non-performing assets (GNPAs) increased to 2.54 per cent of the total in the quarter ended June, as compared to 1.67 per cent in the preceding one. At the end of June, gross NPAs were Rs 9,553 crore, from Rs 6,088 crore at the end of March.

Axis Bank, the country’s third-largest private sector lender, has cut its base rate by 10 basis points to 9.35 per cent, bringing its minimum lending rate on a par with that of ICICI Bank, but still to catch up with the country’s largest lender, State Bank of India, and HDFC Bank, that have base rates of 9.30 per cent each.

Axis Bank’s competitors had reduced their base rates in October last year.

Axis Bank shares gained as much as 1.76 per cent in the early trade on Monday and touched their highest level since August 11, 2015. The scrip gained after the Reserve Bank of India on Friday increased limit for foreign shareholding in the third-biggest private sector lender to up to 74 per cent from 62 per cent earlier.

At 10.39 am, shares of Axis Bank were trading 1.52 per cent up at Rs 573.35. The scrip opened at Rs 571.80 and has touched a high and low of Rs 574.70 and Rs 569, respectively, in trade so far.

NEW DELHI: The government may hold on to its shares in blue chips such as ITC and L&T despite the Specified Undertaking of Unit Trust of India (SUUTI) seeking bids from merchant bankers to advise the agency on its holdings that span across sectors.

While several experts have suggested that SUUTI, which is wholly owned by the government, sell some of the marquee stocks instead of divesting stake in PSUs to raise money, a source in the government said that rushing in with the sale may not be prudent.

Government has invited merchant bankers to help it sell minority stakes in 51 companies, including RIL, ICICI Bank, Axis Bank and L&T, and is looking at exiting them within three years.

The Specified Undertaking of UTI (SUUTI) has investments in these 51 listed as well as unlisted companies, like Hindustan Unilever, ITC Ltd, Jaiprakash Associates and a host of Tata Group firms.

Axis Bank, the country’s third largest private sector lender, has got the approval of the Cabinet Committee on Economic Affairs (CCEA) to raise its foreign shareholding to 74 per cent from 62 per cent.

According to guidelines, foreign shareholding in a private bank cannot exceed 74 per cent. This 12 per cent hike of foreign shareholding is likely to bring in investments of Rs 13,000 crore.

Axis Bank, India’s largest private sector bank, plans to open 400 new branches in financial year 2016-17.

“Of the branches targeted for the year (financial), efforts are on to open 100 in the current quarter of the fiscal,” Sanjay Silas, Axis Bank’s branch banking head, said. The bank would be eyeing the upcoming smart cities as its potential area.

Shares of Axis Bank rose by nearly 3% on Wednesday after the Reserve Bank of India allowed raising foreign shareholding to up to 62% in the company, from the earlier limit of 49%.

The stock gained 2.69% to Rs 529.50 on BSE.

Axis Bank’s top management has decided to take home a reduced variable pay, as the lender’s performance came under pressure in the last financial year due to mounting bad loans.

“The top management will take a cut in the variable pay of anywhere between 20 and 50 per cent. The quantum will depend on various factors, including their role and the departments they work for,” said a top Axis Bank official.

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