Axis Bank says Deccan Chronicle is NPA

Axis Bank declares loan of Deccan Chronicle Holdings as a non-performing asset (NPA).

Written by Fe Bureau | Mumbai | Published:October 17, 2012 3:00 am

Bank’s exposure to media group projected to be nearly Rs.400 crore

Private sector lender Axis Bank has declared the loan account of media group Deccan Chronicle Holdings Limited (DCHL) as a non-performing asset (NPA).

Speaking to reporters on Tuesday,Somnath Sengupta,the executive director at Axis Bank,said the bank has provided for the DCHL exposure.

However,he refrained from commenting about the extent to which the account had been provided for. “We cannot disclose individual loan account details,” he said.

Of a total exposure of R4,100 crore by a consortium of 21 banks,Axis Bank’s share is projected to be at around R400 crore. The consortium also includes lenders like ICICI Bank and Canara Bank.

Sengupta said during the July-September quarter,the bank saw fresh slippages of R628 crore,against slippages worth nearly R460 crore in the first quarter. The private sector lender’s gross non performing assets (NPA) inched higher to 1.10% in the second quarter,against 1.08% in the same duration last fiscal. Net NPA,however,inched down marginally to 0.33% during the quarter,from 0.34% in the previous year.

Axis Bank’s total provision during the second quarter stood at R509.42 crore,higher than R405.58 crore done last year and almost double the R258.84 crore done during the April-June quarter.

The bank also made higher than required NPA provisions worth R115 crore in the quarter,due to uncertainty in the current economic environment,the ED said.

The bank’s total restructured loan portfolio till September 30 stood at Rs.4,068 crore,which was about 2.04% of gross customer assets,a statement from the bank had said on Monday.

Sengupta also said the bank would look at growing its retail loan book to 30% of the total loan book by 2015,from the current 26%.

“It is a part of strategic intent to grow the retail book. We will ensure,it rises further from the current level,” he said.

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