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.
Private sector lender Yes Bank will fare better than competitors in terms of recovery in earnings post demonetisation, according to Nilesh Parikh, Associate Director at financial services firm Edelweiss Securities.
Speaking to CNBC-TV18, Parikh said he expects strong numbers from Yes Bank in the third quarter, with a 25 percent year-on-year growth in profit backed by loan growth. He expects net interest income at 32 percent with stable asset quality, adding slippages would be eyed closely.
Parikh expects Axis Bank to report higher non-performing assets (NPA) with gross NPA (GNPA) at about 5 percent.
Credit growth, which has taken a backseat since demonetisation, should normalise soon, he said. Slippages, though on a downtrend, could remain elevated at Rs 4,500-Rs 5,000 crore. NII growth could be around 14 percent.
An average of estimates of analysts polled by CNBC-TV18 pegs Axis Bank’s third quarter profit at Rs 801.6 crore, down 63.1 percent YoY. NII, the difference between interest earned and interest expended, may grow 9.8 percent to Rs 4,568.5 crore compared with Rs 4,162.1 crore in same quarter last year.
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