Axis Bank Q4 NII seen up 26.5% at Rs 2,153.4 cr

By Avni Raja, Research Analyst at CNBC-TV18

Axis Bank, India's third largest private sector lender by market cap, is likely to report a growth of 16% year-on-year in its profit after tax of Rs 1,183.5 crore for the fourth quarter of FY12, according to CNBC-TV18.
Net interest income is seen going up by 26.5% to Rs 2,153.4 crore in the quarter ended March 31, 2012 as against Rs 1,701 crore in the corresponding quarter of last fiscal. Asset Quality
-Overall asset quality is likely to remain stable
-And hence, provisions expected to decline QoQ
-But slippages and restructuring expected to increase
***Q3 slippages: Rs 535 crore Net Interest Margins
-Could moderate QoQ by around 30 basis points due to high disbursements in priority sector lending and tight liquidity
-Management expects NIMs to come off their recent highs but within their guidance range of 3.25% to 3.5%
-For last two quarters, NIMs have been above guidance at around 3.75% levels Loan & Deposit Growth
-Loan growth expected to grow 18%
-Deposit growth expected to grow 21% Restructured Loans
-Cumulative restructured assets as on December 31, 2011 stood at Rs 2,701 crore (1.8% of total book)
****Of this Rs 1,876 crore was restructured in 9MFY12
-Restructured loans of Rs 295 crore in Q3FY12 (20 basis points of overall loans) Other points
-Fee based income expected to growth 15%
-May see some announcement coming in on the Axis – Enam deal (which finally got RBI approval) Also watch the accompanying video...