"There was enough motivation for a kitchen sink, which would have been the best outcome, but reporting a full-year loss possibly weighed down on that decision, and now we believe the balance of Rs 9,000 crore will be classified as non-performing loans (NPL) in the following two quarters", USbased brokerage firm Jefferies said in a note.
Although the quarterly loss is the highest for a private bank, public sector banks have reported larger losses. The bank had however registered a net profit of Rs 1,225.10 crore in the same quarter of 2016-17. This was largely due to muted interest income in Q4FY18 at Rs. 11,771 crore and Rs. 11,168 crore in Q4FY17.
Net profit of RBL Bank rose 36.88% to Rs 178.12 crore in the quarter ended March 2018 as against Rs 130.13 crore during the previous quarter ended March 2017.
In absolute value, gross NPAs stood at Rs 373.14 crore compared with Rs 86.26 crore.
Even though it is well-capitalised with an overall buffer of over 18 per cent, the bank board has chose to raise up to Dollars 1 billion in core equity, Kapoor said, adding it may consider raising the money by the end of the FY19 if it sees some opportunities for its use. Other income was up 32 per cent to Rs 311.98 crore. "The NPA recognition phase of this cycle is almost complete". Advances grew 18 per cent to Rs 439,650 crore. The bank's balance sheet grew 15 per cent and stood at Rs 691,330 crore as on March 31, 2018. Total Operating Income rose 21.39% to Rs 4507.57 crore in the year ended March 2018 as against Rs 3713.16 crore during the previous year ended March 2017.
It was successful to increase its provision coverage ratio by 5 percentage points in a single quarter to 58 and exuded confidence of breaching the 60-percent mark in the next six months.
Speaking to the media for the first time after announcing her decision to step down, Sharma also said that for the last nine years, Axis Bank has continued to build on its strength in deposit mobilization and grown market share in deposits from 2.9% in FY09 to 3.7% as of December-end.
The bank reported credit cost of 0.94 per cent for the year and Ahuja exuded confidence that it will improve further going ahead.
As per Ghosh, the bank is targeting to "minimise" its bad loans ratio and relying more on tracking the daily on-time repayment rate (OTR) to achieve the goal and deploying more field force.
Sharma's term as the CEO will come to an end in December this year. The watch list of the bank was reduced by 92% to Rs 498 crore. Shares of Axis Bank today traded between Rs 534 and Rs 479 on the BSE.