Q4FY22 Preview: Axis Bank: NII seen at Rs91.1 billion, PAT at Rs36.9 billion

Result date: 28th April, 2022
Recommendation: Buy
Target price: Rs940

Axis Bank is likely to report a healthy performance for the March 2022 quarter. The bank’s loan growth pegged at ~16% on a year-on-year

basis. Rising share of corporate loans and superior growth in unsecured loans could outline the quarterly performance. Consequently, net interest income (NII) could grow 21% over the year-ago quarter.

Despite marginal increase in operational expenses on a sequential basis, margins could remain unchanged at 3.5%.

Slippages are likely to moderate aiding the bank’s gross NPA ratio. Amid stable provisions, credit costs are expected to remain under check.

Profit After Tax (PAT) could grow 38% over the year-ago quarter, and will be aided by decline in provisions.

Important management insights to watch out for:

·         Credit demand across segments

·         Trends in restructuring, asset quality of BB & below rated loan accounts

·         Outlook on net interest margin

 







Rs Billion

March 2022 estimates

QoQ change

YoY change

Net Interest Income (NII)

91.1

5%

21%

Total Income

131.1

5%

18%

Pre-Provisioning Operating Profit

62.6

2%

9%

Profit After Tax (PAT)

36.9

2%

38%

Source: IIFL Research

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( With inputs from indiainfoline)