Axis Bank surprises with Rs 2189 crore loss in Q4 on rising bad loans

Axis Bank Ltd, India’s third-biggest private sector lender by assets, reported a surprise fourth-quarter loss, plagued by a rise in provisions for bad loans.

Net loss was Rs 2189 crore ($327.94 million) for the three months ended March 31, compared with a profit of Rs 1225 crore a year ago, the bank said.

Analysts had on average expected a profit of Rs 514 crore, according to Thomson Reuters data.

Gross bad loans as a percentage of total loans rose to 6.77% at end-March, compared with 5.28% in the preceding quarter and 5.04% a year ago.