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Axis Bank asks sellers of Snapdeal to quickly settle dues; Stock up more than 1%

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Axis Bank has reportedly directed sellers of the trouble online marketplace Snapdeal to clear their outstanding dues with the bank at once, and that it would recall loans and suspend overdraft facilities if they failed to do so.The All India Online Vendors Association has stated that the e-commerce company has dues of about Rs 300 crore and the sellers owe various lenders about Rs 150 crore that they had taken as working capital loans for their operations with Snapdeal.Snapdeal has denied these claims and stated that there was no delay in payment of seller dues and that allegations of delay are being made without any basis to support the same. Axis Bank shares are currently trading at Rs 516, up 1.1% from previous closing price. Axis Bank reported a sharp 73.35% decline in net profit at Rs 579.57 crore for the quarter ended December 2016, compared to year ago period’s net profit of Rs 2175.30 crore. The bank’s provisions and contingencies figures jumped 432.67% to Rs 3795.80 crore in the third quarter of 2016-17, as against  Rs 712.59 crore in the corresponding quarter last year.Axis Bank’s Gross NPAs stood at Rs 20,466.82 crore as on 31 December 2016, against Rs 16,378.65 crore on 30 September 2016 and Rs 5724.05 crore as on 31 December 2015.  Ratio of gross NPAs to gross advances stood at 5.22% for the third quarter, as against 4.14% in the preceding quarter and 1.68% in the year-ago period. Net NPAs to Net Advances stood 2.18% as on 31 December 2016, compared with 0.75% as on 31 December 2015.After losing nearly 10% post announcement of third quarter results in the third week of January 2017, Axis Bank shares edged higher steadily to around Rs 530 by end February.

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