According to average of estimates of analysts polled by CNBC-TV18, net interest income is seen rising 5 percent to Rs 4,741 crore from Rs Rs 4,513.9 crore year-on-year.
In an interview to CNBC-TV18, Manish Agarwalla, Co-Head of Research at PhillipCapital shared his views on readings of quarterly earnings from banking sector.
Axis Bank’s Q1 earnings largely met street expectations and asset quality remained largely stable. The big worry is the slippages from non-watchlist accounts. In an interview to CNBC-TV18, V Srinivasan, Deputy MD of Axis Bank spoke about the results and his outlook for the company.
The country’s third-largest private sector lender’s profit contracted 16 percent year-on-year to Rs 1,306 crore for the quarter ended June 2017.
Key things to watch out for would be asset quality movement. At the end of March 2017, total amount of loans under watchlist was Rs 11,232 crore (which accounts for 3 percent of total loan book).
Provisions may witness a slight uptick after the RBI's diktat in June. Positive trends on asset quality will, however, continue with the pace of slippages into NPAs declining for all banks.
Largely recommend buying the stock, but also highlight concerns on higher provisioning amount and margin pressure in a few cases.
Axis Bank ended a rather difficult year on a much better note which sets the stage for an improved fiscal year 2018, probably on the back of a system-wide resolution of some of the troubled assets.
In an interview to CNBC-TV18, Ravikant Bhat, Research Analyst at IDBI Capital shared his readings and outlook on Axis Bank's Q4 numbers.
The bank's gross addition to NPAs reduced to about Rs 4,800 crore in the fourth quarter from the peak of more than Rs 8,000 crore in the second quarter.
Slippages from watchlist will be closely watched.
Net interest income during the quarter grew by 4.1 percent to Rs 4,333.73 crore compared with Rs 4162.06 crore in year-ago period, with loan growth of 10 percent at Rs 3.47 lakh crore as of December 2016.
Speaking to CNBC-TV18, Nilesh Parikh, Associate Director at financial services firm Edelweiss Securities, says he expects strong numbers from Yes Bank in the third quarter.
Country's third largest private sector lender Axis Bank's third quarter profit is expected to fall 63.1 percent year-on-year to Rs 801.6 crore, according to average of estimates of analysts polled by CNBC-TV18.
Over the last six quarters, not much improvement was seen on the operating side, said Jairam Sridharan, CFO of Axis adding that there now is more uncertainty over eventual numbers of slippages.
The cleansing of Axis Bank's corporate books has already begun and the stress arising from here may be done with completely in 1-2 quarters, says Mayuresh Joshi of Angel Broking.
Country's third largest private sector lender Axis Bank is expected to report a 14.6 percent degrowth in second quarter profit at Rs 1,636.7 crore compared with year-ago period, according to analysts polled by CNBC-TV18. Provisions will be closely watched for profit growth.
Net Interest Income is expected to increase by 0.7 percent Q-o-Q (up 11.9 percent Y-o-Y) to Rs 4547.2 crore, according to Centrum.
Speaking to CNBC-TV18 after Axis Bank reported its first quarter results, CFO Jairam Sridharan said this quarter panned out fairly in line with his earlier guidance that 60 percent of the roughly Rs 22,000-crore watchlist could slip into non-performing assets.
Analyzing the result, Rajiv Mehta of IIFL told CNBC-TV18 that the bank's weak fee income growth is disappointing and expects the bank to be under pressure post weak earnings.
Hemendra Hazari, an expert, said the non-performing assets are higher than analysts expectation. This watch list is not the end of the story," he said.
Key things to watch out for would be asset quality movement, slippages from watchlist and net interest margin.
In an interview with CNBC-TV18, Andhra Bank MD and CEO Suresh N Patel said the bank had fully complied with the Reserve Bank of India's asset quality review guidelines that had called for stricter provisioning of doubtful accounts.
No negative surprises from the results and the loan book to grow by 15-16 percent in FY17, Deven Choksey, MD at KRChoksey.
ICICI Bank reported a disappointing fourth quarter result on Friday, where profits fell 76 percent to Rs 702 crore year-on-year (YoY), majorly hit by an exceptional provisioning of Rs 3,600 crore.