Axis Bank drops after clarification on media reports

Axis Bank was down 0.45% to Rs 523 at 9:19 IST on BSE after the bank issued a clarification to media reports referring to a bank guarantee issued by the bank to certain telecom companies.

The announcement was made after market hours yesterday, 21 March 2018.

Meanwhile, the S&P BSE Sensex was down 11.74 points or 0.04% at 33,124.44.

On the BSE, 13,000 shares were traded on the counter so far as against the average daily volumes of 4.24 lakh shares in the past one quarter. The stock had hit a high of Rs 524.90 and a low of Rs 521.70 so far during the day. The stock had hit a 52-week high of Rs 627.50 on 23 January 2018 and a 52-week low of Rs 447.80 on 23 October 2017.

The large-cap bank has equity capital of Rs 513.26 crore. Face value per share is Rs 2.

Axis Bank said that the bank guarantee has been issued by the bank on behalf of Bharti Airtel. Telecom Disputes Settlement and Appellate Tribunal (TDSAT), vide its order dated 9 January 2018 has required the bank guarantee to be returned. Axis Bank has been informed that the TDSAT order is operative. The bank is seeking clarification from TDSAT on the matter, and will comply with all directions.

Axis Bank clarified that the bank has non-fund based exposure of Rs 9222 crore to the telecom sector as of 31 December 2017, of which approximately 97% is to clients rated AA or better. The bank also informed that it has no exposure to Aircel.

Axis Bank's net profit rose 25.3% to Rs 726.44 crore on 1.3% 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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