Axis Bank Q4 FY24 Results Preview: Net profit likely at Rs 6,250 crore, NIM may shrink by 11 bps sequentially

Axis Bank Q4 FY24 Results Preview: Axis Bank, the country's third largest private sector lender, is all set to report its financial results for the January-March period on Wednesday, April 24. Analysts expect the bank to stage a decent financial performance for the final three months of the last fiscal year with growth across segments and double-digit expansion in loans as well as deposits.    

According to Zee Business research, Axis Bank is likely to register a standalone net profit of Rs 6,250 crore for the quarter ended March 31, as against a standalone net loss of Rs 5,728.4 crore for the corresponding period a year ago that included an exceptional loss of Rs 12,489.8 crore owing to expenses towards the acquisition of Citibank's consumer business in the country. The analysts estimate the private lender's net interest income (NII), or the difference between interest earned and interest paid, for the March quarter at Rs 12,746 crore, up 8.5 per cent on a year-on-year basis. 

Axis Bank is estimated to log a net interest margin (NIM), a key measure of profitability for financial institutions, of 3.9 per cent for the January-March period, as against 4.01 per cent for the previous quarter, according to the research. 

The analysts expect the lender's asset quality to improve, as Zee Business analysts peg its gross non-performing assets (GNPAs) as a percentage of total loans at 1.5 per cent for the March quarter as against 1.58 per cent three months ago.

They estimate its net non-performing assets (NNPAs) as a percentage of total loans to stand at 0.3 per cent in the March quarter as against 0.36 per cent in the October-December period. 

According to the research, Axis Bank is expected to clock growth to the tune of 14-16 per cent in advances and 13-14 per cent in deposits in the March quarter. 

Overall Q4 season for banking space

Analysts expect the banking sector to witness mid-single-digit percentage growth in NII and margin compression owing to the elevated cost of funds, though they expect some improvement on the asset quality front. Read more on what to expect from banks in Q4

Axis Bank shares: Past performance

As of April 22, Axis Bank shares have rewarded investors with a 19.6 per cent return in the past one year, underperforming a 25.9 per cent rally in the headline Nifty50 index though outperforming a 12.4 per cent gain in the sectoral Nifty Bank gauge.

Axis Bank shares finished the March quarter 5.0 per cent weaker, as against a 2.7 per cent rise and a 2.4 per cent fall in the Nifty50 and Nifty Bank indices, respectively. 

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