Axis Bank Q1 Net Profit Seen Up 18% at Rs 1,655 Crore

Private sector lender Axis Bank is likely to report 18 per cent year-on-year (y-o-y) growth in its first quarter net profit to Rs 1,655 crore.

Analysts polled by NDTV estimated its net interest income (interest earned over interest expended) to grow 13 per cent y-o-y to Rs 3,252 crore.

Its loan book is expected to grow nearly 17 per cent y-o-y while its deposit growth is seen at 19 per cent y-o-y. Analysts say SME (small and medium-sized enterprises) and retail loan are likely to be the main driver of its loan growth.

Axis Bank's profitability as measured by net interest margin is seen at 3.6 per cent against 3.7 per cent last quarter and its gross non-performing assets is estimated at 1.3 per cent of its total assets against 1.2 per cent quarter-on-quarter.

Axis Bank's bigger rival HDFC Bank had announced its Q1 results on Monday. HDFC Bank reported its slowest quarterly earnings growth in more than a decade on higher-than-expected provisions. Its net profit grew 21 per cent y-o-y to Rs 2,233 crore.

Axis Bank shares have rallied over 8 per cent in last one month compared to 2.59 per cent rise in the Bank Nifty.

Axis Bank shares closed 1.36 per cent higher at Rs 2023.15 on Monday.

(With inputs from Reuters)