Axis Bank declines over 7% in six sessions

Axis Bank fell 0.92% to Rs 512.05 at 11:26 IST on BSE, extending recent losses after the bank issued a clarification on the bourses after market hours yesterday, 6 March 2018.

Meanwhile, the S&P BSE Sensex was down 137.57 points, or 0.41% to 33,179.63.

On the BSE, 1.07 lakh shares were traded in the counter so far compared with average daily volumes of 2.58 lakh shares in the past two weeks. The stock had hit a high of Rs 517.25 and a low of Rs 510.55 so far during the day. The stock hit a 52-week high of Rs 627.50 on 23 January 2018. The stock hit a 52-week low of Rs 447.80 on 23 October 2017.

Shares of Axis Bank have fallen 7.29% in six trading sessions to its current market price of Rs 512.05, from a close of Rs 552.30 on 26 February 2018.

Regarding a media news captioned, "Axis Bank's Shikha Sharma summoned by SFIO in PNB scam case," Axis Bank clarified that Serious Fraud Investigation Office (SFIO) on 6 March 2018 sought information on the accounts of the Nirav Modi & Gitanjali group of companies. Axis Bank's exposure to these entities is about Rs 200 crore, it said. The bank is not the leader of the lending consortium in these groups, it added. Axis Bank further clarified that this does not have any material impact on the bank.

Last month, state-run Punjab National Bank (PNB) uncovered fraudulent transactions worth nearly $2 billion from one of its Mumbai branches. The branch staff had given unauthorised, improperly logged letters of understanding to a few select account holders who then used the fake documents to obtain advances abroad from the foreign branches of other Indian banks. Nirav Modi, a diamantaire whose eponymous luxury boutiques span the globe; his uncle Mehul Choksi, owner of Gitanjali Gems, a publicly listed jewellery company; and a third company Chandri Allied Paper & Allied Products, which makes waxes, oil and lubricants, were named alleged beneficiary of the unauthorised transactions.

According to media reports, investigators widened their probe on Tuesday, 6 March 2018, with the government's Serious Fraud Investigation Office (SFIO) beginning to call senior executives from Gitanjali's creditor banks for questioning over their loan exposure.

Axis Bank's net profit rose 25.34% to Rs 726.44 crore on 1.29% decline in total income to Rs 14314.63 crore in Q3 December 2017 over Q3 December 2016.

Axis Bank is one of the biggest private sector banks in India.

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