Axis Bank , one of India's leading private sector banks, has implemented a more conservative approach to its accounting practices, resulting in a 4% decline in net profit for the latest quarter. The bank's decision to tighten its one-time settlement accounting policy has led to additional provisioning, impacting its earnings.

Key Highlights

• Axis Bank's net profit declined 4% to ₹5,806.00 crore
• Additional provisioning of ₹614.00 crore due to tightened one-time settlement accounting policy
• The bank's move reflects a more conservative approach to financial reporting

Impact of Policy Change

Axis Bank's decision to revise its one-time settlement accounting policy has resulted in an additional provisioning of ₹614.00 crore. This conservative approach, while impacting short-term earnings, may strengthen the bank's financial position in the long run by potentially reducing future risks associated with non-performing assets.

Industry-wide Accounting Policy Changes

The banking and financial services sector is witnessing a wave of accounting policy revisions, with different institutions adopting varied approaches:

1. Sammaan Capital: Adopted a more aggressive stance by changing its policy on securitized loans worth ₹20,229.00 crore. The company switched from an actuarial model to a contracted tenor model for booking income, resulting in gains of ₹661.60 crore and boosting quarterly profits to ₹334.00 crore.

2. Bandhan Bank: Implemented new collection procedures for its microfinance segment, including raising payment demands on holidays. This change led to a temporary increase in early-stage delinquencies and contributed to a significant 65% drop in net profit to ₹370.00 crore.

Analyst Perspectives

Financial analysts have noted the contrasting approaches taken by these institutions. While Axis Bank and Bandhan Bank have opted for more conservative policies, Sammaan Capital's aggressive approach has raised eyebrows. Some analysts suggest that Sammaan's policy might attract regulatory scrutiny due to its potential to inflate short-term profits.

Implications for Investors

The divergent accounting practices adopted by these financial institutions highlight the importance for investors to closely examine the accounting policies of banks and financial services companies. These policy changes can significantly impact reported earnings and financial stability, making it crucial for stakeholders to understand the underlying reasons and potential long-term effects of such decisions.

As the financial sector continues to evolve, investors and regulators alike will be watching closely to see how these accounting policy changes affect the overall health and transparency of the industry.

Axis Bank , one of India's leading private sector banks, witnessed significant trading activity on the National Stock Exchange (NSE) with two large block trades executed recently.

Block Trade Details

The transactions, which occurred on the NSE, were substantial in both volume and value:

1. First Block Trade:

   • Number of shares: 527,207
   • Price per share: Rs. 1,068.90
   • Total value: Rs. 56.35 crores

2. Second Block Trade:

   • Number of shares: 942,867
   • Price per share: Rs. 1,067.00
   • Total value: Rs. 100.60 crores

Transaction Summary

In total, these block trades involved approximately 1.47 million shares of Axis Bank, with a combined value of Rs. 157 crores.

Block trades of this magnitude often indicate significant institutional activity or large stakeholder movements. However, the specific buyers and sellers involved in these transactions were not disclosed in the available information.

These substantial trades in Axis Bank shares demonstrate continued interest in the banking sector and may reflect institutional investors' perspectives on the bank's performance and future outlook. As always, investors are advised to conduct their own research and consider multiple factors when making investment decisions.