homeearnings NewsAxis Bank Q1 Preview: Profit may surge by 44%, asset quality likely to remain stable
Axis Bank Q1 Preview: Profit may surge by 44%, asset quality likely to remain stable
According to a CNBC-TV18 poll, Axis Bank's net interest income (NII) is projected to increase by 28.1 percent, reaching Rs 12,018.1 crore, compared to Rs 9,384 crore in the same quarter last year. However, the net interest margin (NIM) is anticipated to decline to approximately 4 percent on a quarter-on-quarter basis. Investors and market observers will also be closely monitoring the management's commentary on growth outlook and credit costs.
Axis Bank is set to announce its earnings for the June quarter on Wednesday (July 26).
According to a CNBC-TV18 Poll, the bank's net interest income (NII) is projected to increase by 28.1 percent, reaching Rs 12,018.1 crore, compared to Rs 9,384 crore in the same quarter last year.
Additionally, the profit after tax is expected to witness a surge of 44.5 percent, amounting to Rs 5,961.1 crore, in contrast to Rs 4,125.3 crore during the corresponding period last year.
However, the net interest margin (NIM) is anticipated to decline to approximately 4 percent on a quarter-on-quarter basis, although the asset quality is expected to remain stable.
As the first quarter is typically weaker for all lenders, there is an anticipation of a rise in non-performing asset (NPA) provisions on a sequential basis.
Brokerage firm Motilal Oswal predicts a loan growth of 22-24 percent year on year and 2.9 percent quarter on quarter. Additionally, the firm foresees the gross NPA ratio at 2.1 percent, as opposed to 2 percent in the previous quarter.
Investors and market observers will also be closely monitoring the management's commentary on growth outlook and credit costs.
Shares of Axis Bank ended Tuesday’s trading at Rs 963 per share down 0.87 percent. The stock is up nearly 8 percent in the last six months.
First Published: Jul 25, 2023 6:55 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Lok Sabha elections: 4th phase sees over 68% voter participation, West Bengal leads with 76% turnout
May 14, 2024 1:47 AM
Lok Sabha elections phase 4 witnesses around 63% voter turnout, experts weigh in on key contests
May 14, 2024 12:06 AM
Lok Sabha Election 2024: Shiv Sena UBT’s Arvind Sawant highlights Uddhav Thackeray's vision for Mumbai’s progress
May 13, 2024 9:21 PM
Exclusive interview: 'Southern states will be a big surprise,' says PM Modi
May 13, 2024 9:05 PM