The bank had to recognise over Rs 1,000 crore of assets as bad loans due to action recommended by the RBI, and had to dip into a specially created buffer to show profit, the lender said.

It warned that it foresees another Rs 1,300 crore loans turning bad in the ongoing March quarter alone.

"The bank has accounted for the full impact of the re-classification and the resultant provisioning based on RBI's systemic asset quality review of portfolios," Chief Financial Officer Jairam Sridharan told reporters last evening.

Axis is the first major bank to report third-quarter numbers after the RBI review.

According to reports, the RBI has identified 150 select accounts as stressed ones and asked banks to recognise them as NPAs upfront.

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