Axis, Bandhan, Sammaan tweak a/c practices to rewrite books
The Economic Times [
Mumbai
]
Pune
Aug 18, 2025 | Page No.: 12 | Position: Middle Left | Source: Sangita Mehta | Sq Cm: 295 | AVE: 794334 | PR Value: 3971670
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While Sammaan s income-booking policy helped it post gains Axis tighter provisioning and Bandhan s collection changes were more conservative Axis Bandhan Sammaan Tweak A c Practices to Rewrite Books segment primarily comprises mi- Sangita Mehta crofinance borrowers Mixed Approach This procedural change led to a Mumbai Axis Bank Bandhan Sammaan Most lenders temporary increase in SMA-0 acco- Bank and Sammaan Capital have chose con- follow actuarial unts where payments are delayed revised their accounting practices by zero to 30 days the management tracted tenor model in the first quarter of this fiscal ye- Wormed analysts after announ- ar suggesting a mixed approach to model over Bandhan cing results The bank attributed accounting prudence actuarial to began raising the marginal decline in collection While Axis and Bandhan have book income instalment efficiency to the new holiday billing adopted more conservative practi- demands even practice rather than any deteriora- ces Sammaan Capital formerly on holidays tion in borrower behaviour known as Indiabulls Housing Fi- Axis Bank Bandhan Bank s net profit fell 65 nance opted for an aggressive poli- started to to 2370 crore in June quarter over cy in booking income on securiti- corresponding period last year classify a sed loans which boosted its first- quarter profits borrower AXIS BANK The revised accounting policy hel- as NPA Axis Bank revised its accounting ped Sammaan Capital s report if loan is policy referring to the change as a 2661 6 crore gains In contrast Axis under technical impact The updated Bank which tightened its policy OTS policy aligns with practices follo- made additional provisioning of wed by peers and pertains to one-ti- 2614 crore impacting its earnings me settlements OTS of loans Un- Bandhan Bank implemented proce- arial model der the revised approach if a borro- dural changes in the collection of The management told analysts wer under OTS pays one instal- dues which led to marginal rise in last week that the revised policy has ment the account will continue to stressed loans although it did not been approved by the board adding be classified as an NPA until full re- immediately impact its earnings that there could be minor reduc- payment is made tions in income in subsequent qu- We expect recoveries and upgra- SAMMAAN CAPITAL arters if prepayments occur des to improve in H2FY26 as OTS On its securitised pool amounting They also said that revised co- repayments come in Amitabh to x20 229 crore sold and outstan- lending norms prompted the Chaudhry MD CEO told ana- ding till June 30 Sammaan Capi- change in accounting policy for lysts Of the 8 200 crore gross slip- tal discontinued the conservative securitised loans and that the up- pages 22 709 crore is due to techni- accounting practice of booking front income was used to create cal slippages The lender s net pro- upfront income based on an actua- one-time provisions fit was down 4 to 25 806 crore on a rial model Instead it adopted the The finance company reported a YoY basis contracted tenor model in the first consolidated net profit of 2334 crore It is unclear whether the changes quarter Under the actuarial mo- in the first quarter up 2 4 over the at Axis Bank and Bandhan Bank del lenders book upfront income on corresponding period last year were prompted by regulatory nud- securitised loans for seven to eight Sammaan Capital did not com- ges because other larger banks ha- years factoring in the probability ment on ET s query ve highlighted that they already of home loan prepayments Howe- follow these practices Also these ver under the contracted model a BANDHAN BANK changes were introduced after the lender books indome based on the Starting April Bandhan Bank be- Induslnd Bank episode that put actual tenor of the loan typically gan raising instalment demands the spotlight on accounting dis- 15 to 20 years even on holidays for its emerging crepancies Booking income over a longer te- entrepreneurs business EEB Analysts said the aggressive acco- nure allows for a temporary boost segment regardless of whether unting policy adopted by Sammaan in earnings although most of these collections were made that day may attract regulatory scrutiny loans are eventually prepaid lea- Previously such demands were prompting them to consider stan- ding to income reversals in future not raised on festival holidays sta- dardising policies on booking inco- Thus most lenders follow the actu- te holidays and Sundays The EEB me on securitised loans they said