Axis Bank's Exposure to Highly Leveraged Companies at 8% in Q3

Axis Bank today said it has an exposure of eight per cent in eight large debt-ridden corporate groups at the end of December 2015.

"Our funded exposure to highly leveraged groups has been stable at around 8 per cent at the end of the third quarter," the bank said in a filing to BSE.

Clarifying its statement in the earnings call, Axis Bank said the "leveraged groups referred to here are the eight large corporate groups that the investment community has identified and has been referring to as highly leveraged".

It said about 1.5 per cent of the bank's exposure to these groups is presently classified as non-performing assets, another 25 per cent restructured and around 4 per cent under the 5/25 scheme.

Under the 5/25 scheme, introduced by RBI in July 2014, banks can extend loan repayment for a period of up to 25 years, with an option of refinancing the loan every five years.

Without disclosing the names of eight "highly leveraged" corporate groups, Axis Bank said eight per cent of funded exposure to the group is well distributed, with the largest group exposure forming about 1.5 per cent.

No sector has contributed in excess of 20 per cent of the net increase in April-December, Axis Bank said, adding that the top four sectors in terms of incremental disbursements have been petroleum products, cement, power generation and other metal and metal products.