Axis Bank gains 4% on exposure to select accounts

At 10:56 am; the stock was up 3.8% at Rs 511, the top gainer among Nifty 50, which was up 0.61%

Axis Bank was up 4.5% to Rs 514 on the National Stock Exchange (NSE) in intra-day trade after the bank said around 80% of its debt exposure to eight of the 12 stressed accounts referred in Reserve Bank of India (RBI) directions on June 15, 2017.

The RBI issued directions in their communication dated 15 June 2017 advising banks to initiate insolvency resolution process in select accounts under the provisions of the Insolvency and Bankruptcy Code, 2015 (IBC).

“The Bank's had exposure on eight of these accounts on 31s March, 2017. Total fund based outstanding of the Bank on these accounts was Rs 5,071 crore. Non-fund based outstanding was Rs 212 crore,” Axis Bank said in a regulatory filing.

Around 80% of the outstanding was secured.  Against this outstanding, the provision held was Rs 2,497 crore, it added.

At 10:56 am; the stock was up 3.8% at Rs 511, the top gainer among Nifty 50 index, which was up 0.61%. A combined 4.59 million shares have already changed hands on the counter so far, against an average 6.2 million shares that were traded daily in past two weeks on BSE and NSE.

Thus far in the calendar year 2017, Axis Bank had underperformed the market by gaining 10% against 16% rise in S&P BSE Sensex.