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Business Standard
5 days ago
- Business
- Business Standard
One-time jump in slippages hurts Axis Bank Q1 results; should you sell?
Axis Bank share price: Frequent negative surprises on the earnings front, also seen during the June quarter of the current financial year, has forced analysts to cut Axis Bank's earnings forecast for the coming years. In some cases, analysts have even downgraded the stock to factor-in the weakness in earnings. Those at Nuvama Institutional Equities, for instance, have downgraded Axis Bank stock to 'Hold' on repeated volatility in asset quality and earnings growth. "We cut earnings by 5.4 per cent for FY26 and 6.3 per cent for FY27on an already below consensus base. We also trim our share price target to ₹1,180, from ₹1,400, valuing the stock at 1.7x book value, based on FY26 earnings estimates. Since Axis Bank has more catch up to do on rate cuts compared to peers, we expect the stock's discount to peers to widen given repeated volatility," the brokerage said in its report. On the bourses, Axis Bank share price crashed 7.4 per cent intraday to hit a low of ₹1,073.95 per share on the BSE. By comparison, the BSE Sensex index was down 164 points (0.2 per cent) at 9:33 AM. Axis Bank Q1 slippages On July 17, Axis Bank said its Q1FY26 net profit slipped 4 per cent year-on-year (Y-o-Y) to ₹5,806 crore, weighed by a "technical" slippages and one-time bump in provisions. "Prudent application of technical parameters for recognising slippages, and consequent upgrades impacted asset quality, including provisions, in Q1FY26. Technical impact is largely restricted to cash credit and overdraft products, and one-time settled (OTS) accounts," Axis Bank said. The "technical slippage" affected the bank's net profit by ₹614 crore, return on assets (RoA) by 15 basis points (bps), and return on equity (RoE) by 1.4 per cent, it added. The bank's total slippages stood at ₹8,200 crore at the end of Q1, including slippages worth ₹2,709 crore due to the "technical impact". Total slippages were, thus, 71 per cent higher on a Y-o-Y and quarter-on-quarter (Q-o-Q) basis. Further, while the bank's loan loss provisions shot up to ₹3,900 crore, up 2.85 times Q-o-Q and 1.52 times Y-o-Y, its total provisions and contingencies were ₹3,948 crore in Q1FY26. By comparison, the same was ₹1,359 crore in Q4FY25 and ₹2,039 crore in Q1FY25. Of the total provisions, ₹821 crore was attributable to the "technical impact". This also led to the gross non-performing asset (GNPA) ratio and net NPA ratio worsening by 29bp and 12bp Q-o-Q, respectively, to 1.57 per cent and 0.45 per cent. "Though the management had earlier given guidance for this policy change to ensure industry-best prudency, the extent of NPA formation is higher than expected. The management indicated that Q1FY26 bore the impact of the stock plus flow, and so slippages during 9MFY26 should be relatively moderate (albeit elevated), as also the credit cost," noted analysts at Emkay Global Financial Services. The management's decision to move from Days Past Due (DPD)-based NPA recognition to qualitative judgement-based recognition, and to not upgrade an account till the last installment is received in full in case of OTS, analysts at Emkay added, would, therefore, lead to elevated NPA flow in the near term, albeit largely even-out in the long term. Slow growth hurts Axis Bank margins Apart from asset quality issue, Axis Bank's Q1 earnings also bore the impact of slow loan growth and rate cut cycle. The bank's total deposits slipped 1 per cent Q-o-Q, but rose 9.3 per cent Y-o-Y, to ₹11.61 trillion. Its total loans, meanwhile, grew 1.8 per cent Q-o-Q and 8 per cent Y-o-Y to ₹10.59 trillion, driven by corporate segment. This led to an increase in loan-to-deposit ratio (LDR) to 91.2 per cent. Net interest income (NII) was broadly flat Y-o-Y, but down 2 per cent Q-o-Q, at ₹13,560 crore with net interest margin (NIM) contracting 17bps Q-o-Q to 3.80 per cent. Notably, Axis' NIM contraction came even when the bank has been the slowest among peers in cutting rates. The bank, they said, follows the T+90 repricing method, which is slower than peers. "We cut FY26, FY27, and FY28 earnings estimates by 7 per cent, 3 per cent, and 1 per cent, respectively. We expect the RoA to dip to 1.6 per cent in FY26E and gradually recover to 1.7 per cent," said Emkay Global. It has maintained its 'Buy' rating on the stock with an unchanged share price target of ₹1,400 as the stock trades cheap at 1.4x FY27E adjusted book value. Motilal Oswal Financial Services, meanwhile, has maintained its 'Neutral' rating on the stock with a target of ₹1,250 as it sees higher slippages and credit costs in the near-term. "The residual loan re-pricing will also continue to put pressure on margins, though the bank has maintained its through-cycle margin guidance of ~3.8 per cent. We cut our earnings estimates for FY26 and FY27 by 8.6 per cent and 5.7 per cent, respectively," it said.
The Age
04-07-2025
- Entertainment
- The Age
Usher cancels Australian tour just weeks after tickets go on sale
R&B icon Usher has cancelled all of his Australian tour dates just months after announcing what was going to be his first tour down under in over a decade. A statement was posted on the Ticketek website on Friday, stating that the promoter of Usher's Australian tour 'regrets to advise that the scheduled shows to take place in November/December will no longer be proceeding'. A Live Nation spokesperson confirmed none of the shows would be going ahead. No specific reason for the cancellation was cited. In March, the My Boo singer shared news of the Australian leg of his Past, Present, Future tour on Instagram, telling fans he would be 'bringing the A to the AUS' later this year. He was scheduled to perform six shows at Melbourne's Rod Laver Arena between November 19 to 26, and another six shows at Sydney's Qudos Arena between December 1 and 11. Tickets went on sale in May, less than two months ago. Loading According to the Ticketek website, those who bought tickets will automatically receive full refunds, and no action is required from them. Notably, Ticketek is only responsible for the sale of tickets. 'Customers should allow approximately 30 business days for the refund to appear in their account,' it read. 'Customers who purchased tickets at a Ticketek agency or using Ticketek gift vouchers have been contacted to the email address of their Ticketek account to request additional information so we can process your refund.' Those who bought their tickets via Ticketek also received this information in an email sent on Friday afternoon. It has been nearly 14 years since Usher's previous tour in Australia – the OMG tour in 2011. Demand appeared to be strong for his upcoming tour, which has already taken place in the US and Europe, as the promoter added four additional shows to the schedule after the presale in May.
Sydney Morning Herald
04-07-2025
- Entertainment
- Sydney Morning Herald
Usher cancels Australian tour just weeks after tickets go on sale
R&B icon Usher has cancelled all of his Australian tour dates just months after announcing what was going to be his first tour down under in over a decade. A statement was posted on the Ticketek website on Friday, stating that the promoter of Usher's Australian tour 'regrets to advise that the scheduled shows to take place in November/December will no longer be proceeding'. A Live Nation spokesperson confirmed none of the shows would be going ahead. No specific reason for the cancellation was cited. In March, the My Boo singer shared news of the Australian leg of his Past, Present, Future tour on Instagram, telling fans he would be 'bringing the A to the AUS' later this year. He was scheduled to perform six shows at Melbourne's Rod Laver Arena between November 19 to 26, and another six shows at Sydney's Qudos Arena between December 1 and 11. Tickets went on sale in May, less than two months ago. Loading According to the Ticketek website, those who bought tickets will automatically receive full refunds, and no action is required from them. Notably, Ticketek is only responsible for the sale of tickets. 'Customers should allow approximately 30 business days for the refund to appear in their account,' it read. 'Customers who purchased tickets at a Ticketek agency or using Ticketek gift vouchers have been contacted to the email address of their Ticketek account to request additional information so we can process your refund.' Those who bought their tickets via Ticketek also received this information in an email sent on Friday afternoon. It has been nearly 14 years since Usher's previous tour in Australia – the OMG tour in 2011. Demand appeared to be strong for his upcoming tour, which has already taken place in the US and Europe, as the promoter added four additional shows to the schedule after the presale in May.
New Indian Express
22-06-2025
- General
- New Indian Express
The four pillars of Delhi's heritage
When Arnav Vij, Aryan Bardeja, Vihaan Tampi and Karissa Gupta discovered that their school stood right next to a historic gurudwara—home to a large rock where Bhagat Singh once tested bombs ahead of the famous Central Legislative Assembly bombing in 1929—they were stunned. The realisation that they passed daily by a site of such historical importance moved the young history enthusiasts to do something about it. 'It made us realise that in a culturally rich city like Delhi, there are countless lesser-known or hidden places with deep historical and cultural significance,' says Vihaan. Thus was born WaPas or Walking Past—an app that guides users through historical monuments across Delhi-NCR. Developed by the four Class XII students of Noida's Shiv Nadar School, WaPas uses GPS and geotagging to help users rediscover the history they walk past every day, one notification at a time. 'It's a navigation app that tells users about nearby monuments, historical places, and landmarks—especially the lesser-known ones,' says Aryan. The app currently features over 500 monuments and heritage sites. 'We wanted to cover both the famous and the forgotten,' says Arnav, adding, 'For instance, near Feroz Shah Kotla, there are old watchtowers that are largely neglected. We've also mapped small mosques, several gurudwaras, besides well-known sites like the Red Fort and Humayun's Tomb.' WaPas acts as a pocket-sized heritage guide. 'Our goal is to raise awareness about the heritage in our own neighbourhoods,' says Vihaan, who led the app's development, adding, 'We hope the app becomes a catalyst for people to visit and appreciate these lesser-known sites.'
Mint
17-06-2025
- Business
- Mint
What is DPD in a credit report and why does it matter?
Credit cardholders and loan borrowers need to ensure the repayment is made before or by the due date. Timely payments help in maintaining and/or improving the credit score. A good credit score is important for getting new credit cards and loans. While processing new credit applications, banks look at the applicant's past repayment track record. It can be tracked through the Days Past Due (DPD) parameter in the credit report. In this article, we will understand what is DPD, various values reflected under DPD status in the credit report, and their implications. The Days Past Due or DPD status in a credit report reflects the number of days by which a credit cardholder or loan borrower has delayed a repayment. Banks report the repayment status for credit card outstanding and loan EMIs to Credit Information Companies (CICs) like CIBIL on a fortnightly basis as per RBI guidelines. The CICs like CIBIL process the information and update it in the individual's credit report. The credit report gives a month-wise repayment status of every credit instrument availed by the borrower. For example, suppose an individual holds a credit card from HDFC Bank. The credit report will reflect the monthly payment status for the card. The status is displayed month-wise for the last 36 months, starting from the latest month. Let us understand how the DPD status is reflected in the credit report and the meaning of each status. The month-wise DPD status in the credit report shows one of the following. DPD status 0: When the DPD status for any month is displayed as 0, it means the repayment has been made before or by the due date. You must always aim to make every repayment before or by the due date. When you do that, the bank reports the DPD status as 0 to the CIC, and the CIC further updates the same as 0 in your credit profile. When you make timely repayments month after month, you demonstrate a good repayment track record. The DPD status as 0 reflects good credit behaviour. When you apply for a new credit card or loan, the bank will check your credit report for the past payment track record. When they see a good payment track record, the chances of the credit application getting approved increase. Timely repayments have the highest weightage in the calculation of your credit score. Thus, when your DPD status is 0 with every passing month, it contributes towards improving your credit score. DPD status XXX: In some months, you will see the DPD status displayed as XXX. It means, the bank has not reported your repayment status for that particular month to the CIC. You don't have to worry about it, as it doesn't have any negative implication on your credit score. If your DPD status is anything other than 0 or XXX, you need to check further. Before we look into these statuses, let us understand how the DPD is calculated in the event of delayed repayment(s). Whenever a loan EMI or credit card outstanding is delayed beyond the due date, the DPD is calculated as follows. The DPD is the difference between the current date and the due date. For example, suppose the current date is 1st May 2025, and the loan EMI repayment date was 1st April 2025, and the EMI repayment is still pending. The DPD will be the number of days between the current date and the EMI repayment due date. In this case, the DPD will be 30 days. The bank will report the 30 days repayment delay to the CIC, and the CIC will update the DPD as 30 days in the borrower's credit report. Any repayment delay will impact your credit score negatively. Now, let us understand the DPD status for a delayed repayment. Depending on the duration for which a repayment has been delayed, the DPD status will be as follows. STD: The DPD status as STD or Standard means the repayment delay is less than 90 days. Every repayment delay impacts the credit score negatively. However, as the account is still standard, the impact may be less severe. The DPD status as STD or Standard means the repayment delay is less than 90 days. Every repayment delay impacts the credit score negatively. However, as the account is still standard, the impact may be less severe. SUB: The DPD status as SUB or Sub-standard means the repayment delay is more than 90 days. A credit account where the delay has crossed 90 days is classified as a non-performing asset (NPA) as per RBI guidelines. The DPD status as SUB or Sub-standard means the repayment delay is more than 90 days. A credit account where the delay has crossed 90 days is classified as a non-performing asset (NPA) as per RBI guidelines. DBT: The DPD status as DBT or Doubtful means it has remained a Sub-standard account for a period of 12 months. The probability of collection from a doubtful account is low. The DPD status as DBT or Doubtful means it has remained a Sub-standard account for a period of 12 months. The probability of collection from a doubtful account is low. LSS: The DPD status as LSS or Loss means a loss has been identified and remains uncollectible. When you apply for a new credit card or loan, the bank will check your credit score and profile. In the credit profile, they will check the DPD status of your existing/closed credit cards and loans. If the DPD status of all past repayments is either 0 or XXX, it will be viewed positively. The chances of the new credit application getting approved will increase. If the bank comes across any DPD status apart from 0 or XXX, it will check further details. A DPD status like STD, SUB, DBT, LSS, etc., can reduce the probability of the new credit application getting approved. You need a good credit score to improve the chances of your credit card or loan application getting approved. Some steps to increase and maintain a good credit score include the following. Timely repayments: Always pay the credit card outstanding and loan EMI before or by the due date. It will ensure the DPD status is 0. Always pay the credit card outstanding and loan EMI before or by the due date. It will ensure the DPD status is 0. Lower credit utilisation ratio: The credit utilisation ratio measures the percentage of credit used from the available credit limit. A credit utilisation ratio of 30% or lower is considered good. The credit utilisation ratio measures the percentage of credit used from the available credit limit. A credit utilisation ratio of 30% or lower is considered good. Healthy credit mix: An individual should have a healthy credit mix of secured loans (for example, home loan, vehicle loan, etc.) and unsecured loans (for example, credit card, personal loan, etc.) An individual should have a healthy credit mix of secured loans (for example, home loan, vehicle loan, etc.) and unsecured loans (for example, credit card, personal loan, etc.) Make one credit application at a time: An individual should make one credit application and wait for the bank to give its decision. Making multiple applications within a short period is considered credit-hungry behaviour by banks. An individual should check their credit report regularly. They should monitor the DPD status and other details. If the DPD status is anything other than 0 or XXX, it should be checked further. Always make timely payments so that the DPD status is 0. It helps in contributing towards increasing the credit score and maintaining it healthy. It also increases the chances of new credit applications getting approved. Gopal Gidwani is a freelance personal finance content writer with 15+ years of experience. He can be reached at LinkedIn.
