Q3FY24 Preview: Axis Bank: NII seen at Rs. 123,700 million, PAT at Rs. 61,220 million

18 Jan 2024 , 01:53 PM

Result date: January 23, 2023

Recommendation: Buy 

Target price: Rs. 1,380

(Source: IIFL Research)

Axis Bank could witness good growth in its advances, partly aided by growth in the erstwhile Citibank consumer portfolio. Loan growth could come in higher than industry growth in the quarter. The Bank’s Net Interest Income (NII) could increase by about 13% relative to the year-ago quarter.

Amid rising cost of funds, net interest margin could witness slight compression. December quarter could witness some normalization of the excess provisions carried by the Bank. Overall, asset quality is likely to remain stable.

The Bank’s Profit After Tax or PAT could grow about 9% as compared to the year-ago quarter.

Important management insights to watch out for:

• Details about integration of Citibank’s consumer portfolio and synergies realized thereof
• Growth outlook and strategy across segments and markets
• Margin drivers from here on

Rs. Million	December 2023 estimates	QoQ change	YoY change
Net Interest Income	123,700	1.90%	13.50%
Profit After Tax	61,220	4.95%	9.45%

Source: Brokerage reports