Axis Bank seeks changes in RBI nod for Enam deal

Axis Bank has sought modifications to the in-principle approval given by the Reserve Bank of India (RBI) for the acquisition of certain businesses of Enam Securities after the central bank raised some objections.

The RBI stipulated certain conditions for scheme of accounting and the eventual structure for the businesses to be acquired, an Axis Bank release said.

“We did get an in-principle approval from the RBI,” said chief financial officer and executive director Somnath Sengupta. “They had stipulated some changes in scheme of accounting.”
“We are awaiting the regulator’s response. We certainly hope that it would be done sooner than later. We do hope that things will happen quickly,” Sengupta said.

He refused to provide more details.

In November, Axis Bank had announced that it will acquire Enam Securities’ investment banking and equity management business. The all-share deal was valued at Rs2,067 crore and these businesses of Enam were to be merged with a newly set up subsidiary of Axis Bank.

Axis Bank on Friday said as it was awaiting clarification from the RBI, it did not factor in the acquisition in the April-June results.
The bank reported a net profit of Rs942 crore for the April-June quarter on an income of 6,049 crore.

Axis Bank shares rose 4.62% to Rs1,296.90 on the National Stock Exchange on Friday. The broader index of banks shares closed 2.19% higher. NewsWire18