Q1FY23 Preview: Axis Bank: Net Interest Income seen at Rs91.0 billion; PAT at Rs38.4 billion

24 Jul 2022 , 12:21 AM

Result date: 25^th July, 2022
Recommendation: Buy
Target price: Rs900

Healthy loan growth both over the year-ago quarter and sequentially should drive topline of Axis Bank in the June 2022 quarter.  Analysts at IIFL Capital Services forecast Net Interest Income (NII) at Rs91 billion, up 17% Y-o-Y.

Net Interest Margin could inch down a bit owing to increase in cost of funds. Cost to income ratio is also expected to remain elevated. Pre-Provisioning Operating Profit (PPOP) is pegged at Rs61.3 billion. This will be a Y-o-Y decline of 1%. Profit After Tax (PAT) is forecasted at Rs38.4 billion, up 78% over the year-ago quarter.

Key management insights to look into:

• Trends in loan growth, asset quality
• Outlook on margins and cost of funds

Rs billion	June 2022 estimates	YoY change	QoQ change
Total income	126.6	14%	(3)%
NII	91.0	17%	3%
PPOP	61.3	(1)%	(5)%
PAT	38.4	78%	(7)%

Source: IIFL Research