Axis Bank slips after signing agreement for acquiring partial stake in ACRE

Axis Bank fell 0.52% to Rs 598 at 09:44 IST on BSE after the bank signed a Share Purchase Agreement with IFCI for acquisition of 13.67% stake in Assets Care and Reconstruction Enterprise.

The announcement was made after market hours on Friday, 16 September 2016.

Meanwhile, the S&P BSE Sensex was up 6.01 points or 0.02% at 28,605.04

On BSE, so far 58,300 shares were traded in the counter as against average daily volume of 7.07 lakh shares in the past one quarter. The stock hit a high of Rs 606.15 and a low of Rs 595.70 so far during the day. The stock had hit a 52-week high of Rs 638 on 7 September 2016. The stock had hit a 52-week low of Rs 366.65 on 18 January 2016. The stock had underperformed the market over the past 30 days till 16 September 2016, rising 1.37% compared with 1.69% rise in the Sensex. The scrip, however, outperformed the market in past one quarter, gaining 14.14% as against Sensex's 7.41% rise.

The large-cap private sector bank has equity capital of Rs 477.89 crore. Face value per share is Rs 2.

Shares of IFCI were up 1.96% to Rs 28.60. Axis Bank said that it has signed a Share Purchase Agreement with IFCI for acquisition of 73.28 lakh equity shares (13.67% of total outstanding shares) of face value of Rs 10 per share in Assets Care and Reconstruction Enterprise (ACRE) from IFCI at Rs 31 per share, resulting in a total cash consideration of Rs 22.72 crore. The transaction is subject to requisite regulatory approvals, including from Reserve Bank of India (RBI), Axis Bank said. The indicative time period for completion of transaction is January 2017, the bank said. ACRE had total assets of Rs 336 crore and total income of Rs 35.90 crore in the year ended 31 March 2016 (FY 2016). ACRE was registered with RBI as a securitisation company.

Separately, Axis Bank announced that the bank has kept its Marginal Cost of Funds based Lending Rate (MCLR) unchanged after a latest review. The bank's MCLR for overnight loans will be 8.85%, the rate for one month will be 8.9% and for three months it will be 9.1%. The MCLR on 6-month loans will be 9.2% and for one-year loans the rate will be 9.25%, the bank said. MCLR on two-year loans will be 9.35% and for three-year loans the rate will be 9.4%. The rates are with effect from 17 September 2016. The announcement was made after market hours on Friday, 16 September 2016.

Axis Bank's net profit fell 21.38% to Rs 1555.53 crore on 13.22% growth in total income to Rs 13852.18 crore in Q1 June 2016 over Q1 June 2015.

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

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