Axis bank Declares 80% Bad Loans As Secured

Axis Bank on Thursday said that it had exposure on eight of the accounts that the RBI had earlier this month identified for insolvency proceedings.

The total fund-based outstanding from these eight accounts is Rs5,070 crore. Non-fund-based outstanding was Rs212 crore.

The bank added that, against this outstanding, the provision held was Rs 2,497 crore. It also clarified that it has secured around 80% of the outstanding loans.

This move is seen positive because provisioning requirement on secured loans is lower as compared to unsecured loans.

RBI on June 15 had advised banks to initiate insolvency resolution process in select accounts under the provisions of the Insolvency and Bankruptcy Code (IBC).

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