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Axis Bank Q4 results preview: Deposit growth expected to outpace loan growth,NIM may come under pressure
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
According to a poll by CNBC-TV18, the bank is anticipated to report a Profit After Tax (PAT) of approximately ₹6,207.4 crore, a turnaround from the previous quarter’s loss of ₹5,728.4 crore.
Private sector lender Axis Bank is scheduled to release results for the fourth quarter of FY24 on Wednesday (April 24). For the January-March period, analysts are anticipating deposit growth to outpace loan growth. However, they believe that Net Interest Margin (NIM) may face pressure, and slippages are expected to increase on a quarterly basis.
According to a poll by CNBC-TV18, the bank is, however, anticipated to report a Profit After Tax (PAT) of approximately ₹6,207.4 crore, a turnaround from the previous quarter’s loss of ₹5,728.4 crore.
This will represent a 2.2% quarter-on-quarter (QoQ) increase.
Similarly, the Net Interest Income (NII) is expected to reach ₹12,803.9 crore, up 9% QoQ from ₹11742.2 crore in the preceding quarter.
Analysts have identified key factors to monitor closely during the earnings announcement.
Loan growth is projected to be around 14% year-on-year (YoY) and 4% QoQ, with a focus on high-yielding loan segments, a trend observed in recent quarters.
However, challenges such as potential pressure on Net Interest Margin (NIM) and expected rise in slippages QoQ pose areas of concern that analysts will be keen to assess.
Despite these challenges, Axis Bank’s asset quality is expected to remain stable QoQ.
In the last quarter, Axis Bank reported a 3.7% year-on-year (YoY) rise in net profit at ₹6,071.1 crore.
Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, grew 9.4%, coming at ₹12,532 crore against ₹11,459.3 crore in the corresponding quarter of FY23.
The net interest margin (NIM) for the third quarter of FY24 stood at 4.01%.
Meanwhile, shares of Axis Bank were trading 0.58% up at ₹1,062.60 apiece on the BSE.
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