Analysts have estimated net interest margin (NIM) to fall in the 3.4-3.5 range. All eyes are on slippages, restructuring and accounts rated BB or below.
ICICIdirect said retail-oriented banks such as Axis should see meaningful reduction in stress accrued in the last quarter. The recent management commentary has also indicated that. It said credit cost should decline as a result of better show on the asset-quality front, while anticipating the bank profit at Rs 2,997 crore, up 78 per cent YoY. “NII is expected to grow 10 per cent to Rs 8,047 crore, driven by 11 bps expansion in NIM. Loan growth is expected to come in at 11 per cent YoY, led by traction in the retail segment. Within the retail book, growth should be driven by home loans. Deposits growth is expected at 17 per cent YoY with sequential 30 bps rise in CASA ratio,” it said.
Nirmal Bang Institutional Equities said the brokerage would log a 79.7 per cent YoY rise in net profit at Rs 3,023.60 crore. NII would grow 8.3 per cent YoY to Rs 793.11 crore but NIM would fall 27 basis points YoY to 3.4 per cent, it said. Credit cost was estimated to fall 100 basis points to 1.3 per cent.
The private lender has reported a 12 per cent rise in loans and advances at Rs 6,22,352 crore and a 15 per cent surge in deposits at Rs 7,30,772 crore.
Motilal Oswal Securities said the net profit would rise 64.2 per cent to Rs 2,760 crore and NII would go up 8.9 per cent to Rs 7,980 crore. NIM would remain stable at 3.5 per cent. On asset quality, gross NPA was seen at 4 per cent, compared with 3.9 per cent in June quarter and 4.2 per cent in the year-ago quarter. Axis Bank’s net NPA was seen at 1.2 per cent, the same as the June quarter, but higher than 1.1 per cent in the year-ago quarter.
