Axis Bank Q2 preview: PAT likely to increase 8.5% YoY; asset quality may be affected marginally

The country's leading private sector lender Axis Bank is set to release its quarterly results tomorrow. Zee Business research inputs suggest profit after tax (PAT) at the lender to grow by 8.5 per cent in the September quarter to Rs 6,366 crore. The company's PAT was at Rs 5,863 crore in the same quarter last year.

Net interest income or NII- the difference between the interest earned by the bank and the interest paid out is expected to surge 9.7 per cent on-year to Rs 13,498.2 crore. It was Rs 12,314 crore in the same quarter last year. 

The net interest income as well as fee income will see an impact amid low growth in credit offtake at the private lender.

Net interest margin or NIM, a profitability metric, may, however, see some softness during the quarter as per Zee Business Research.

Also, the research inputs noted that increasing slippages during the quarter will have a bearing on the company's provisioning as well as costs.

The asset quality at the lender is seen to be marginally impacted with gross non-performing assets inching higher to 1.6 per cent as against 1.5 per cent in the previous quarter. Net non-performing assets, also, are expected to see a marginal impact and come in higher at 0.4 per cent as against 0.3 per cent QoQ.

Key monitorables

The shareholders and other stakeholders will be watchful of the cost deposit ratio at the lender.
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