Axis Bank is expected to report a 7 percent year-on-year net profit growth of Rs 5,698 crore in the September quarter. This growth is driven by an increase in net interest income (NII) and a solid asset quality. However, like other banks, Axis Bank will face pressure on margins due to higher costs
of funds. NII is projected to grow by 15 percent on-year to Rs 11,908 crore, thanks to steady loan growth. Nevertheless, net profit may dip 2 percent on a quarterly basis due to elevated cost ratios from Citi integration. The rising cost of funds will affect the net interest margin (NIM),
which is expected to contract. On the positive side, asset quality is anticipated to improve, with a decrease in non-performing assets (NPAs). Deposits and loan growth are also expected to see healthy increases. Analysts will closely watch the bank’s
commentary on Citi portfolio integration, growth outlook, and margin trajectory.