Moneycontrol
Jul 25, 2017 08:22 AM IST | Source: CNBC-TV18

Axis Bank Q1 profit seen down 20%; slippages from watchlist key to watch

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).

Private sector lender Axis Bank is expected to report a 19.9 percent degrowth in first quarter profit at Rs 1,245.3 crore year-on-year, according to average of estimates of analysts polled by CNBC-TV18. Results will be announced on July 25.

Net interest income during the quarter is seen rising 6.1 percent to Rs 4,791.8 crore compared with Rs 4,516.9 crore in same quarter last fiscal, according to average of estimates of analysts polled by CNBC-TV18.

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).

Hence, slippages from watchlist will be seen closely. Slippages from watchlist in Q4 were at Rs 3,566 crore.

Analysts say if gross non-performing assets come below 5.1 percent then that will be positive.
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