In early trading on Thursday, October 17, Axis Bank’s share price decreased by around 1.60 per cent ahead of its results for the July-September quarter (Q2). The big financial company’s shares began trading at ₹1,152.95, down 1.6% from its previous close of ₹1,152.25. At 10:25 am, the stock saw a 1.5% decrease in value, closing at ₹1,135.35.
Axis Bank Q2 preview
Experts predict that Axis Bank will record a year-over-year (YoY) improvement in net profit for Q2FY25 of 8–9%, mostly due to lower slippages and higher net interest income (NII).
As Mint reported earlier, an average estimate from five brokerages predicts the private sector lender’s NII for Q2 may expand by 10 per cent YoY, while slippages are predicted to increase by 29 per cent YoY but fall by 12 per cent quarter-on-quarter (QoQ).
Motilal Oswal Financial Services, a broking firm, predicts that NII will experience a YoY growth of 10.7%, while Axis Bank may record a 13% YoY increase in net profit for Q2. The broking house anticipates that in Q2, margins may decline and the CD (credit-deposit) ratio will likely stay high. According to the broking firm, asset quality ratios might be closely watched, and cost ratios might stay high.
Core PAT at Nuvama Institutional Equities is up 10% YoY, and pre-provision operating profit (PPoP) could increase by 18% YoY.
“NII is likely to grow 1.8 per cent QoQ and 11.2 per cent YoY. The margin is likely to decline by nearly 3 bps. Growth in NII, non-interest income, and lower provisions would lead to higher PAT. Axis will likely report QoQ loan growth of under 1 per cent,” said Nuvama.
Axis Bank share price trend
Up to October 16 of this year, shares of Axis Bank increased by almost 4.5%. During the same period, the benchmark Sensex gained almost 13%, but the stock underperformed.
The stock has decreased by almost 4% in October on a monthly basis. Should the stock close October lower than it started, it will have ended the previous four months of gains.
The stock fell to ₹951.55 on October 25 of last year from its 52-week low of ₹1,339.55 on July 12 of this year.
