Axis Bank Q2 results preview: Double-digit NII growth may drive PAT higher by 8% YoY

Leading private sector lender Axis Bank is likely to report 8% year-on-year growth in its net profit for the quarter ended September 2024. The higher PAT will be driven by growth in net interest income (NII), non-interest income and lower slippages.

NII for the second quarter is seen rising 10% year-on-year, according to an average estimate of five brokerages. Slippages for the quarter are expected to rise 29% year-on-year in the reporting period, but fall 12% on a sequential basis.

The loan growth for the quarter is likely to be weak at just 2% quarter-on-quarter, but rise 11% year-on-year.


In the preceding June quarter, Axis Bank reported a net profit of Rs 6,035 crore, which was up 4% year-on-year, while net interest income rose 12% to Rs 13,448 crore.

Here's what brokerages expect from Axis Bank's Q2:

Kotak Equities

We are building loan growth of 11% YoY (2% QoQ). We expect NIM to be stable (3.8%) QoQ as we are past the re-pricing of funds. Fee income growth should be sluggish, reflecting weak loan growth.

We expect slippages of Rs 5000 crore (2% of loans), mostly led by retail. Key discussion areas: slippages, especially from the unsecured segment, deposit mobilization and NIM progression.

Nuvama

NII is likely to grow 1.8% QoQ / 11.2% YoY. Margin is likely to decline by 3 bp. Growth in NII, non-interest income, and lower provisions would lead to higher PAT. Axis will likely report QoQ loan growth of under 1%

Motilal Oswal

Expect the CD ratio to remain elevated. Cost ratios to remain elevated. Expect margin to moderate in 2Q. Asset quality ratios to be keenly monitored

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)