Custom Search

Friday, April 27, 2012

Axis Bank to divest 25% stake in AMC to Schroder; reports 25% jump in Q4 net

Axis Bank will induct Schroder Singapore Holdings Pvt Ltd as a 25 per cent shareholder in its wholly-owned subsidiary Axis Asset Management Company Ltd. The Bank's board approved a proposal to this effect on Friday.

The induction of Schroder Singapore Holdings Pvt Ltd, a wholly owned subsidiary of Schroder Plc, is subject to regulatory approvals.

Axis AMC had average assets under management of Rs 8,800 crore in the January-March 2012 period.

Axis Bank has reported a 25 per cent increase in net profit at Rs 1,277 crore in the January-March 2012 period as against Rs 1,020 crore in the corresponding quarter last year.

Net profit for FY12 rose by 25 per cent to Rs 4,242 crore as against Rs 3,388 crore for FY11, said a bank statement.

The board of India's third biggest private sector bank has proposed a dividend of Rs 16 per share as against Rs 14 per share last year.

In the reporting quarter, India's third largest private sector bank reported a 26 per cent rise in net interest income (difference between interest earned and paid) to Rs 2,146 crore (Rs 1,701 crore).

Other income, which includes fee income and trading income, was up by 9 per cent to Rs 1,588 crore (Rs 1,450 crore in Q4FY11).
Acquisition of Enam's financial services biz

The bank's board has approved the reassessment of valuation of the financial services business proposed to be acquired from Enam Securities Private Ltd at Rs 1,396 crore.

The bank said the reassessment is in view of the ‘prevailing market conditions and with a regard to underlying commercial factors.

Hence, Enam shareholders would receive Axis Bank shares in the ratio of 5 shares (5.7 shares earlier) for every 1 share held in Enam, translating into approximately 2.93 per cent shareholding in Axis Bank. The bank said the RBI has conveyed its ‘no objection' to the revised Scheme of Arrangement for the acquisition.

Shares of Axis Bank closed 1.57 per cent up at Rs 1,103.25 per share on the BSE as against the previous close of Rs 1,086.20.


Post a Comment

Popular Posts

Desi Google | A2Z Famous Quotes | What's Cooking America | Joke Site