Axis Bank Q3 profit seen up 22% to Rs 706 cr, slippages from watchlist key to watch

Country’s third largest private sector lender Axis Bank is expected to report a 21.9 percent growth in profit at Rs 706.2 crore for quarter ended December 2017, compared to Rs 579.4 crore in year-ago.

Net interest income during the quarter is seen rising 3.8 percent to Rs 4,498.5 crore from Rs 4,333.7 crore in same quarter last year, according to average of estimates of analysts polled by CNBC-TV18.

The stock price rallied 10.8 percent during December quarter and surged more than 25 percent in 2017.

Key things to watch out:

Slippages from watchlist will be seen closely, which were at Rs 2,431 crore in Q2FY18. Focus will also be on non-watchlist slippages.

The total amount of loans under watchlist was Rs 7,148 crore (1.74 percent of the total loan book) at the end of September 2017.

Analysts said if gross non-performing assets come below 6 percent and net interest margin above 3.5 percent (against 3.45 percent in Q2FY18) then that could be taken positively by the Street.

Axis Bank had raised capital during the quarter, which could aid its net interest margin.

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