Axis Bank — India's fifth largest lender by market value — is all set to report its quarterly financial results on Monday. Investors will closely monitor the private sector banking major's numbers for any surprises in terms of profit, margin as well as bad loans, and the management's outlook on growth.

Analysts in a CNBC-TV18 poll expect Axis Bank's net profit for the April-June period to come in at Rs 3,595.4 crore, up 66.4 percent compared with the previous three months.

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They estimate its net interest income — or the difference between interest earned and interest paid — to grow 17.9 percent sequentially to Rs 9,149.7 crore.

According to CLSA, Axis Bank's loan growth — a key measure of demand — is expected to come in at 3.1 percent in the quarter ended June compared with the previous three months.

The brokerage expects the lender's net interest margin — a measure of profitability for financial institutions — to improve to 3.5 percent, from 3.49 percent in the March quarter.

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Analysts however expect a marginal increase in Axis Bank's bad loans.

CLSA pegs Axis Bank's gross non-performing assets — or bad loans as a percentage of total loans — to increase to 2.95 percent in the three-month period, from 2.82 percent in the January-March period.

Mayuresh Joshi, Head-Equity Research at William O' Neil, told CNBC-TV18 he expects Axis Bank to report a decent quarterly performance. "The longer-term targets that the management has probably given in terms of RoA (return on asset) and RoE (return on equity) should probably be achieved," he said.

William O' Neil has a 'hold' rating on Axis Bank and the incoming numbers may lead to a rerating for the stock, he said.

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(Edited by : Sandeep Singh)

First Published:Jul 25, 2022 2:51 PM IST