Axis Bank drops after leaving MCLRs unchanged

Axis Bank declined 0.98% to Rs 521.55 at 9:30 IST on BSE after the bank said that it has kept its lending rates based on marginal cost of funds unchanged effective from 18 June 2016.

The bank made the announcement after market hours on Friday, 17 June 2016

Meanwhile, the S&P BSE Sensex was down 23.35 points or 0.09% at 26,602.56.

On BSE, so far 19,711 shares were traded in the counter as against average daily volume of 7.17 lakh shares in the past one quarter. The stock hit a high of Rs 521.95 and a low of Rs 515.10 so far during the day.

Axis Bank said that the bank's Marginal Cost of Funds based Lending Rate (MCLR) for overnight loans will be 8.95%, the rate for one month will be 9.05% and for three months it will be 9.25%. The MCLR on 6-month loans will be 9.3% and for one-year loans the rate will be 9.35%, the bank said. MCLR on two-year loans will be 9.45% and for three-year loans the rate will be 9.5%.

All rupee loans sanctioned and credit limits renewed with effect from 1 April 2016 are priced with reference to the Marginal Cost of Funds based Lending Rate (MCLR) which is the internal benchmark of the concerned bank. Actual lending rates are determined by adding the components of spread to the MCLR.

Axis Bank's net profit fell 1.2% to Rs 2154.28 crore on 9.8% rise in total income to Rs 13592.97 crore in Q4 March 2016 over Q4 March 2015.

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

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