Stock Market

Axis Bank Q2 profit seen down 2%; loan growth may be 18-19%

Country’s third largest private sector lender Axis Bank is expected to report a 2.3 percent degrowth in second quarter profit at Rs 1,933.4 crore compared with year-ago period, according to analysts polled by CNBC-TV18. Provisions will be closely watched for profit growth.

Net interest income, the difference between interest earned and interest expended, may increase 13 percent year-on-year to Rs 4,582.4 crore on strong loan growth that is expected to be around 18-19 percent in Q2.

Key things to watch out for would be asset quality movement, slippages from watchlist and net interest margin.

Total amount of loans under watchlist were Rs 22,857 crore (6.6 percent of the loan book) and slippages from watchlist were Rs 2,680 crore in Q1.

Analysts say if gross non-performing assets fall below 2.75 percent (it was at 2.54 percent in Q1), net interest margin at or above 3.8 percent (3.79 percent in Q1) then that will be positive.