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First Loss Means Worst Is Over for Axis Bank as Shares Surge

  • Bad loan recognition ‘almost complete’; Axis plans debt sale
  • Analysts cut target price, reiterate buy on the stock
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Axis Bank Ltd. jumped the most since 2013 as an unprecedented recognition of bad loans prompted investors to overlook the Indian lender’s first-ever loss.

Provisions climbed to 71.8 billion rupees ($1.1 billion) in the three months ended March from 28.1 billion the previous quarter as an additional 165 billion rupees of fresh defaults were identified after the implementation of tighter regulations, the bank said in an exchange filing late Thursday. The Mumbai-based bank reported a loss of 21.9 billion rupees, the first in data going back to 2006, and compared with a 6.62 billion-rupee profit predicted in a Bloomberg survey of 15 analysts.