How many windows does a banker need to look out from for a clear view? Only one and Axis Bank chief Amitabh Chaudhury is not liking what he sees.
With economic activity beyond essentials in a standstill due to covid-19, Axis Bank saw that it is prudent to set aside a large amount towards future risk rather than show a quarterly profit for the three months ended March.
No point in showing profits when you cannot even share it with shareholders as the regulator has told banks not to declare dividend.
Investors are surely annoyed by the net loss of ₹1388 crore and the near 3% fall in the stock in early trade shows this. But the fact that it comes on the back of a ₹3000 crore provision towards covid-19 should give some succour.