Axis Bank share falls over 4% ahead of Q3 earnings; here's what to expect

Axis Bank share fell over 4% ahead of the private sector lender's Q3 earnings set to be announced later in the day. Share of Axis Bank lost up to 4.33% to Rs 630.1 against previous close of Rs 658.60 on BSE.

Axis Bank share trades higher than 50 day, 100 day and 200 day moving averages but lower than 5 day and 20 day moving averages.

The stock has lost 14.65% in one year but gained 1.81% since the beginning of this year.

At 2: 25 pm, the stock was trading 4.25% or Rs 28 lower at Rs 630.80. The lender is expected to post a healthy growth in Q3 profit.

Kotak Institutional Equities expects the lender to post a 83 per cent YoY, and 91 per cent sequential rise in profit after tax.  It sees PAT at Rs 3,210.8 crore during the quarter under review. Profit before tax or PBT is expected at Rs 4,309.8 crore, a growth of nearly 90 per cent on year from Rs 2,271.7 crore; and of 86 per cent QoQ from Rs 2,317 crore reported in Q2FY21.

"We expect loan growth at 7 per cent YoY with greater focus on retail. That apart, net interest margin (NIM) is expected to stay unchanged QoQ at 3.6 per cent (led by loan composition and lower funding costs). We expect operating profit growth at 11 per cent YoY, at Rs 6,390.5 crore, led by better cost controls," Kotak Institutional Equities said in a pre-earnings report.

Edelweiss Securities sees loan momentum improving in Q3 as compared to last quarter with retail deposits growth expected to be steady. "On asset quality front, restructuring proportion will be limited and collections in different segments need to be monitored. Limited Covid-19 provisioning in the quarter will shore up profit," it said in an earnings preview report.