October 28, 2015

Axis Bank Sold 1820 cr. of Loans at 65% Loss to ARCs, Drags Down Stock 7%

Axis Bank has fallen majorly today. It fell from 521 yesterday to 482 today, a fall of 7.5%. There’s a good reason: the worries about asset quality.
Axis
In their conference call, they mentioned that they sold loans to Asset Recovery Companies (ARCs). These are typically companies that buy bad assets from banks and then attempt to recover those loans.  
During the quarter, it has emerged from the Conference call and probably inadvertantly mentioned, that:

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