Axis Bank Q1 preview: Net profit likely to grow 9%; margins may contract

Axis Bank- the country’s fifth leading banking major by market capitalisation is slated to report its Q1 numbers later today. Zee Business research expects the lender’s standalone net profit to record 8.85 per cent growth on-year to Rs 6,310 crore as against Rs 5,797.1 crore as the lender is seen to see good growth in its business. NII at the private sector lender is also expected to log good double digit growth of 10.9 per cent to Rs 13,257 crore as against Rs 11,958.8 crore in the same quarter last year.

Loan growth during the quarter is expected at 15 per cent against 16 per cent in the same quarter last year. Deposit growth at the lender is also seen contracting to 16 per cent as against 17 per cent earlier.

Meanwhile, the asset quality at the lender is seen to remain more or less steady witn gross NPA expected in the range of 1.4-1.5 per cent as against 1.43 per cent in the previous March quarter. Net NPA is also seen at 0.3 per cent.

Net interest margin or NIM is seen to contract to 3.7-4 per cent, while it was 4.06 per cent in the previous March quarter. 

Treasury income at the lender is seen to fall, while the fee income is expected to see a rise. Further, the desk anticipates that the slippages will be more in the agriculture and retail segment. 

Credit cost at the lender is seen to increase too during the review period.

Just ahead of the results later today, Axis Bank stock traded near day’s low price at Rs 1,236.3, down over 2 per cent on the BSE.