Private sector lender Axis Bank will announce its earnings for the quarter ended December 2024 today. Brokerage Citi India sees Axis Bank's Q3 profit at Rs 6,304.6 crore, rising 4 per cent year-on-year (Y-o-Y) but falling 9 per cent quarter-on-quarter (Q-o-Q). The lender is likely to post a 9% rise in net interest income (NII) at Rs 13,620.3 crore. NII growth could be 1 per cent on a Q-o-Q basis. Th brokerage noted a likely 2 per cent Q-o-Q loan growth and 3 per cent Q-o-Q deposit growth.
Loan book is expected to climb 10 per cent to Rs 10.24 trillion, from Rs 9.32 trillion in Q3FY24. In the September 2024, loan book stood at Rs 9.99 trillion. Deposits are expected to come at Rs 11.19 trillion compared with Rs 10.05 trillion Y-o-Y and Rs 10.86 trillion Q-o-Q.
Global brokerage Nomura expects a 10% quarter on quarter fall in but a 3 percent year on year rise in net profit to Rs 6,240 crore. NII could see a marginal rise of 1% Q-o-Q and a 9 per cent Y-o-Y to Rs 13,610 crore.
Q3 provisions are seen at Rs 2,080 crore, rising 102 per cent Y-o-Y.
“Operationally, loan growth is expected to be softer at 10 per cent Y-o-Y/2 per cent Q-o-Q, compared with peers, led by lower deposit growth of 11 per cent Y-o-Y/2 per cent Q-o-Q. Credit cost may stay elevated, but contained at 0.9 per cent. NIMs could decline ~4bp Q-o-Q,” Nomura said.
Domestic brokerage Prabhudas Lilladher sees Axis Bank posting a a marginal rise of 6 per cent Y-o-Y to Rs 6436 crore in profit. However, the brokerage expects a 7 per cent Q-o-Q contraction from net profit in Q2 of this fiscal.
The lender is likely to post a 11% rise Y-o-Y and 3 per cent Q-o-Q rise in NII. However, the brokerage expects a sharp rise in provisions on a yearly basis. It sees a 75% rise in provisions to Rs 1,800 cr against Rs 1,028.3 crore. On a sequential basis, though, this would be a drop of 18.3 per cent from 2,204.1 crore.
In thE December 2023 quarter, the lender reported a net profit of Rs 6,071 crore backed by a net interest income (NII) of Rs 12,532 crore.
In Q2FY25, net profit came at Rs 6,918 crore and NII at Rs 13,483 crore. Its pre-provision operating profit (PPoP) was Rs 9,141 crore in Q3FY24 and Rs 10,712 crore in Q2FY25.
Meanwhile, Axis Bank stock touched a high of Rs 1042.35, gaining 1.5 per cent on BSE today. Total 1.55 lakh shares of the firm changed hands amounting to a turnover of Rs 16.03 crore on BSE. Market cap of the bank rose to Rs 3.21 lakh crore.