Stock to Watch: Axis Bank shares in focus ahead of Q2 results

Shares of Axis Bank will be in focus in Thursday's trade as the leading private lender will announce its results for the quarter ended September 2024 later today.

In the run up to the earnings, the stock has been underperforming with a decline of nearly 3% in the last five days.

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.

Kotak Equities is building a loan growth of 11% YoY as it expects NIM to be stable QoQ. 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," the brokerage said.

Meanwhile, Nuvama sees NII to grow 1.8% QoQ and 11.2% YoY.

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