Axis Bank is set to announce its earnings for the September quarter on Wednesday, October 25.

According to a CNBC-TV18 Poll, the bank's net interest income (NII), the difference between interest earned and interest expended, is projected to increase by 15.4%, reaching ₹11,957.4 crore, compared to ₹10,360.3 crore in the same quarter a year ago. Sequentially, NII is expected to remain flat.

Additionally, the profit after tax is expected to witness a surge of 7.6%, amounting to ₹5,732.7 crore, in contrast to ₹5,329.8 crore during the corresponding period last year.

However, the net interest margin (NIM) may come under pressure. As per Kotak Securities, NIM is expected to decline by 5 basis points quarter-on-quarter.

Kotak also estimates treasury loss in the second quarter, which can also have an impact on operating profit growth.

The lender's loan growth is expected at 20% YOY and 3% QOQ. Loan growth will be in high-yielding loans, as seen in the recent quarters.

Slippages are expected to remain stable sequentially. Kotak estimates slippages of Rs 4,200 crore and ICICI Securities of ₹3,500 crore as against ₹3,990 crore QOQ, led by the retail segment.

The bank's asset quality is expected to remain stable on a sequential basis. MOSL expects the gross non-performing asset (GNPA) ratio and net non-performing asset (NNPA) ratio to be the same sequentially.

Axis Bank's near-term growth outlook and the progress in NIM would be among the key things to monitor.

Shares of Axis Bank settled 1.51% lower at ₹965.55 apiece on the NSE on Monday. The stock has gained 10% in the past six months.

(Edited by : Amrita)

First Published:Oct 25, 2023 8:26 AM IST