Q2FY24 Preview: Axis Bank: NII seen at Rs. 119,795 million, PAT at Rs. 57,358 million

23 Oct 2023 , 10:54 AM

Result date: October 25, 2023

Recommendation: Buy

Target price: Rs. 1,250

(Source: IIFL Research)

Axis Bank could post healthy growth in loans (including the consumer portfolio of Citigroup) as well as deposits during the September 2023 quarter. The Bank’s Net Interest Income (NII) could grow 16% over the year-ago quarter. 

Net Interest Margin (NIM) could come under pressure and witness slight moderation. Higher employee costs as well as operating expenses are key pain points on profitability. Credit costs, though, could remain under control.

Profit After Tax (PAT) could grow 8% over the year-ago quarter.

Important management insights to watch out for:

• Trends in credit demand across segments and markets
• Key margin drivers going forward
• Outlook on asset quality

Rs. Million	June 2023 estimates	YoY change	QoQ change
NII	119,795	15.7%	0.2%
PPOP	87,718	13.7%	(0.5)%
Profit After Tax	57,358	7.6%	(1.1)%

Source: Brokerage Reports