Credit Costs

Axis Bank touts quality push, but market flags a host of concerns

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Axis Bank touts quality push, but market flags a host of concerns

Axis Bank tightened its asset classification and income recognition norms, signalling a more conservative credit approach that appears to have dented the lender’s June-quarter profitability. An unexpected bottom-line shrinkage caused the stock to slump more than 5% Friday, forcing a retreat of the Nifty on which Axis Bank has the third-biggest weighting among private lenders. … Read more

Worries build up over RBI strictures on infra financing

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Worries build up over RBI strictures on infra financing

Mumbai: Shares of state-owned banks, non-banking finance companies (NBFCs) and infrastructure firms plunged as much as 10% on Monday following the Reserve Bank of India‘s tougher draft guidelines on the financing and accounting of project loans. The proposed stricter lending criteria, with additional provisioning, are aimed at preventing accounting shocks but could potentially hurt balance … Read more