Here's what to expect from Axis Bank Q1 earnings
India's third largest private sector lender Axis Bank's first quarter (April-June) net profit is expected to rise 21 percent year-on-year to Rs 1,398 crore. Net interest income (NII or the difference between interest earned and paid out), may grow 26 percent to Rs 2,744, according to an average of poll estimate.
July 18, 2013 / 14:35 IST
Moneycontrol Bureau
India's third largest private sector lender, Axis Bank's first quarter (April-June) net profit is expected to rise 21 percent year-on-year to Rs 1,398 crore. Net interest income (NII or the difference between interest earned and paid out), may grow 26 percent to Rs 2,744; according to an average of poll estimate by CNBC TV18.The bank had reported a forecast beating 22 percent y-o-y rise in its fourth quarter (Jan-March) net profit at Rs 1,555 crore. NII had risen 24 percent y-o-y to Rs 2,665 crore.Also read: Here's how RBI move will help mutual fund investmentRecently, the bank hit the headlines when the Reserve Bank of India (RBI) had slapped a fine of Rs 5 crore on the bank for violating Know Your Customer (KYC) norms. Among three large private sector lenders, the penalty was highest for the Axis Bank.Both loan and deposit base would expand in the range of 16-18 percent. Other income may increase 15-20 percent."The bank's asset quality needs to be closely watched. It has been dealing with some restructured loans. The lender is focusing more on retail business, which is good. However, a section of auto loans may generate some stress loans for the bank," a banking analyst from a foreign brokerage told moneycontrol.com on conditions of anonymity. The bank has recently launched its subsidiary in the United Kingdom for full banking operations. Axis Bank UK Ltd had obtained an approval from the British regulators on April 29, 2013.Since last six months, Axis Bank shares dropped more than 15 percent compared with 13 percent fall in the Bank Nifty - the broader index for banking stocks.saikat.das@network18online.com Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
