2 weeks Ago By Moneycontrol
India’s third largest private lender, Axis Bank, is expected to post a muted performance for the January to March quarter (Q4FY25), owing to sluggish loan growth and subdued margins. The bank is scheduled to announce its Q4 results on April 24, 2025. According to Moneycontrol's poll, Axis Bank’s net interest income (NII) is expected to show a modest increase of 6.
1 percent year-on-year, reaching Rs 13,894 crore in Q4FY25, up from Rs 13,089 crore in the same quarter last year. However, the bank’s profit-after-tax (PAT) is likely to drop by 6 percent year-on-year, falling to Rs 6,710 crore from Rs 7,130 crore. Estimates of analysts polled by Moneycontrol are shown to be in a narrow range, meaning any positive or negative surprises may elicit a sharp reaction in the stock price.
Among the brokerages polled, Phillip Capital rolled out the most bullish projections while Elara Capital forecasted the slowest growth for Axis Bank. What factors are driving the earnings? Soft loan growth: According to analysts at Phillip Capital, Axis Bank’s advances are expected to grow by 9 percent year-on-year to Rs 10.5 lakh crore in the March quarter, compared to Rs 9.
6 lakh crore in the same period last year. Stable asset quality: The bank’s net non-performing asset (NNPA) ratio is projected to be around 0.3 percent in Q4FY25, slightly lower than 0.
4 percent in Q3FY25. The gross NPA (GNPA) ratio is estimated to stand at 1.4 percent in the March quarter, down from 1.
5 percent in the previous quarter, as per Phillip Capital analysts. Margins under pressure: Analysts at Equirus expect Axis Bank’s net interest margins (NIMs) to come under pressure in the March quarter. NIMs are forecasted to be at 3.
9 percent in Q4FY25, showing a decline of 14 basis points from 4.1 percent in Q4FY24. What should investors keep an eye on this quarter? Investors will be watching closely for updates on deposit trends, loan growth figures, and how margins are shaping up.
During the January-March period, Axis Bank’s stock has risen by 3 percent, outperforming the Nifty 50 index, which declined by 2 percent during the same period. Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management.
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