Axis Bank is set to announce its earnings for the June quarter on Wednesday (July 26).

According to a CNBC-TV18 Poll, the bank's net interest income (NII) is projected to increase by 28.1 percent, reaching Rs 12,018.1 crore, compared to Rs 9,384 crore in the same quarter last year.

Additionally, the profit after tax is expected to witness a surge of 44.5 percent, amounting to Rs 5,961.1 crore, in contrast to Rs 4,125.3 crore during the corresponding period last year.

However, the net interest margin (NIM) is anticipated to decline to approximately 4 percent on a quarter-on-quarter basis, although the asset quality is expected to remain stable.

As the first quarter is typically weaker for all lenders, there is an anticipation of a rise in non-performing asset (NPA) provisions on a sequential basis.

Brokerage firm Motilal Oswal predicts a loan growth of 22-24 percent year on year and 2.9 percent quarter on quarter. Additionally, the firm foresees the gross NPA ratio at 2.1 percent, as opposed to 2 percent in the previous quarter.

Investors and market observers will also be closely monitoring the management's commentary on growth outlook and credit costs.

Shares of Axis Bank ended Tuesday’s trading at Rs 963 per share down 0.87 percent. The stock is up nearly 8 percent in the last six months.

First Published:Jul 25, 2023 6:55 PM IST