Axis Bank may report 20% YoY fall in profit in Q1; asset quality likely to slip

Private sector lender Axis Bank may report nearly 20 per cent YoY fall in net profit on Tuesday for the quarter ended June 30, 2017 with marginal decline in asset quality.

According to brokerage Motilal Oswal Financial Services, gross non-performing assets of the lender may deteriorate to 5.8 per cent QoQ from 5 per cent in the previous quarter ended March 31, 2017.

Operating profit may see a fall of 6.7 per cent YoY, while net interest income (NII) may jump by 6.2 per cent YoY. Bottomline may see a fall of 20 per cent YoY to Rs 1,242.80 crore during the quarter under review.

One should look for the quantum of corporate slippages from watch-list and any revision in the size of the same. Quantum of loans rescheduled under 5:25, SDR and S4A should also be zeroed on in the upcoming quarterly numbers.

However, Nirmal Bang Securities believes that the lender may report 9.80 per cent drop in profit after tax figures to Rs 1,403.50 crore in Q1FY18 against Rs 1,555.53 crore in Q1FY17. Net interest income of the lender may rise 5.6 per cent YoY to Rs 4,770.60 crore, while pre-provision profit may see a drop of 2.6 per cent YoY to Rs 4,354.70 crore during the quarter under review.

Shares of Axis Bank settled 1.09 per cent down at Rs 534.30 on Monday.