Big deals are getting announced every week and this time it was the big deal coming in from the house of Axis Bank. In an interview with CNBC-TV18, Akshay Chudasama, Managing Partner at Shardul Amarchand Mangaldas discussed the overall mergers and acquisitions (M&A) trend and how it is shaping up for the next year as well.
Being a no. 1 bank or no.2 bank is not the big driver – the big driver is – to see that we have a great franchise, have enough growth opportunities and create value for our shareholders, said Shikha Sharma, MD & CEO, Axis Bank.
The board of Axis Bank on Friday approved stake sale to private equity player Bain Capital and other investors in its bid to raise capital by issue of equity linked securities on a preferential basis.
Axis Bank had informed the exchange earlier this week that it will hold board meeting on Friday for approval of fund raising.
The bank did not mention any details related to amount which it wants to raise.
Reports in the Indian media have said the bank was looking to raise as much as USD 1 billion from a group of investors after an increase in bad loans. The reports have named U.S. buyout group Bain Capital, Singapore state investor GIC and Canada Pension Plan Investment Board among potential investors.
As per the latest numbers, ICICI Bank had 83,058 employees as of September 30, 2017. This number as on June 2017 stood at 84,140 employees.
Private sector banks reported cumulative divergences of Rs 12,000 crore after the RBI asked to make disclosures in classifying select accounts as NPAs, which earlier were not classified by the bank.
Top investment banking sources tell CNBC-TV18 that Bain Capital and others in talks to pick up 5 percent equity stake in Axis Bank.
YES BANK - bad loans have surged as Q2 shows a significant divergence from the Reserve Bank of India’s (RBI) assessment to the tune of over Rs 6,300 crore. In an interview to CNBC-TV18, Siddharth Purohit of SMC Institutional Equities shared his views and outlook on the YES BANK’s Q2 numbers.
This is the second time that the RBI, in its annual risk-based supervision, has observed divergences in both the banks’ NPA reporting.
At its earnings update on October 17, Axis Bank, which is rated Baa3 with a stable outlook by Moody’s, reported a 24% quarter-on-quarter increase in NPAs driven largely by a Rs 8,100-crore fresh slippages in the corporate front.
Steel account that Reserve Bank of India (RBI) told Axis Bank to classify as non-performing asset (NPA) is loan to Jindal Steel & Power (JSPL).
With banks burdened with a spike in bad loans and shortage of capital availability, the government may push the RBI to help them in meeting capital requirements.
ICICI Direct recommended hold rating on Axis Bank with a target price of Rs 490 in its research report dated October 18, 2017.
JM Financial recommended hold rating on Axis Bank with a target price of Rs 475 in its research report dated October 17, 2017.
Do not expect such high divergence for other banks and what happened with Axis Bank to happen with the peers, says Srikanth Vadlamani, VP-Financial Institutions Group, Moody's.
Centrum Research recommended hold rating on Axis Bank with a target price of Rs 480 in its research report dated October 18, 2017.
Edelweiss recommended hold rating on Axis Bank with a target price of Rs 545 in its research report dated October 17, 2017.
With weak global cues and earnings data coupled with regulatory stance, it signed a caution sentiment in the upcoming session and it is expected to witness a marginal consolidation before the next rally.
In an interview to CNBC-TV18, Lalitabh Shrivastawa, AVP-BFSI at Sharekhan shared his views and readings on the numbers as well as on the stock.
Axis Bank posted disappointing Q2 numbers. In an interview to CNBC-TV18, Siddharth Purohit of SMC Institutional Equities gave his take on the stock.
Axis Bank reported a sharp rise in bad loans with slippages in the second quarter crossing Rs 8,900 crore. In an interview to CNBC-TV18, Jairam Sridharan, CFO of Axis Bank spoke about the results and his outlook for the bank.
While retaining buy call on the stock, Bank of America Merrill Lynch cut its target price to Rs 590 from Rs 650 per share and estimated Rs 12,000 crore of further new slippages in second half of FY18.
A look at top cues from domestic and international cues that could have a bearing on D-Street.