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NEW DELHI: Private lender Axis Bank is set to announce the October-December quarter earnings on Tuesday.
Brokerages are expecting the bank to report healthy numbers, in continuation of second quarter numbers, which saw 83 per cent year-on-year (YoY) surge in its profit.
Motilal Oswal Securities estimates the bank may report a 80 per cent YoY surge in PAT on a low base, while the loan growth may come at 15 per cent.
"We estimate Axis Bank's PAT of Rs 1,310 against Rs 730 crore in 3QFY18, a growth of 80 per cent YoY on a low base.
It may report a nearly 15 per cent loan growth, driven by continued strong growth in the retail and SME segments," the brokerage said, adding that deposit growth is likely to be nearly 20 per cent, resulting in an elevated CD ratio of nearly 99 per cent.
The bank's attempt to clean up its balance sheet might have moderated the quantum of stressed loans.
"We expect slippages to moderate to about 2.9 per cent from 4.6 per cent a year ago," said the brokerage.
Net NPA in relation to its net advances may fall to 2.4 per cent for the third quarter.
It was 2.6 per cent in the same quarter last fiscal.
Net Interest Income (NII) may see a surge of 14.8 per cent YoY to Rs 5,432.2 crore in 3QFY19 from Rs 4,731.5 crore in the year-ago period.
Kotak Institutional Equities is also upbeat on Axis Bank's third-quarter prospects.
In a report, the brokerage said Axis Bank's December quarter adjusted PAT may see a surge by as much as 99.6 per cent YoY to Rs 1,449.7 crore from Rs 726.4 crore for the corresponding quarter a year ago.
NII may jump 12.8 per cent YoY to Rs 5,336.6 crore from Rs 4,731.5 crore in the year-ago period, the brokerage said.
The views of Reliance Securities is broadly in sync with Motilal Oswal Securities and Kotak Institutional Equities, seeing an 11.5 per cent YoY rise in Axis Bank's NII and 86.7 per cent YoY rise in PAT.
However, the brokerage thinks fresh slippages of the bank could remain elevated from corporate stress pool.
Centrum Capital says Axis Bank may report a 17.3 per cent YoY growth in NII led by 12.5 per cent YoY growth in overall loans, while NIM may come at 3.01 per cent for December quarter, slightly improved by 5bps YoY, due to increased MCLR, reduced slippages and slower pace of deposit rate.
Axis Bank numbers will not only reveal how it fared in the last quarter, but it will also show the bank's prospects of the future.
Quantum of bank's corporate slippages, its strategy on retail, unsecured and business banking loans are the key things market will watch closely.
Axis Bank shares were trading on a flat note on BSE in morning trade.
