Axis Bank's exposure to highly leveraged cos at 8 pc in Q3

Axis Bank today said it has an exposure of eight per cent in eight large debt-ridden corporate groups at the end of December 2015.
"Our funded exposure to highly leveraged groups has been stable at around 8 per cent at the end of the third quarter," the bank said in a filing to BSE.
Clarifying its statement in the earnings call, Axis Bank said the "leveraged groups referred to here are the eight large corporate groups that the investment community has identified and has been referring to as highly leveraged".
It said about 1.5 per cent of the bank's exposure to these groups is presently classified as non-performing assets, another 25 per cent restructured and around 4 per cent under the 5/25 scheme.

Under the 5/25 scheme, introduced by RBI in July 2014, banks can extend loan repayment for a period of up to 25 years, with an option of refinancing the loan every five years.
Without disclosing the names of eight "highly leveraged" corporate groups, Axis Bank said eight per cent of funded exposure to the group is well distributed, with the largest group exposure forming about 1.5 per cent.

(REOPEN DEL67)
Searches were also conducted at residential premises of at least two Axis Bank officials, sources said.
The action was taken after two people held with cash earlier reportedly told the police that the currency exchange of old to new was being done by the bank officials on 30 per cent commission, they added.