Axis Bank is set to report its financial results for the April-June quarter of the fiscal year 2026-27 on July 18. Analysts anticipate a healthy performance driven by strong loan and deposit growth, although net interest margin (NIM) is expected to decline due to competitive funding costs and seasonal factors.
Key Details
The bank's gross advances increased by 18.8% year-on-year to ₹12.73 lakh crore, with a quarter-on-quarter growth of 2.3%. Total deposits rose by 18.2% year-on-year and 2.8% quarter-on-quarter to ₹13.73 lakh crore. Current account and savings account (CASA) deposits grew 11.4% year-on-year but fell 1.4% sequentially. Term deposits saw a 22.8% year-on-year increase and a 5.5% quarter-on-quarter rise to ₹8.51 lakh crore, according to the bank's business updates released earlier this month.
Brokerage firm Motilal Oswal Financial Services projects a 10.6% year-on-year rise in net interest income (NII), while net profit is expected to increase by 15% year-on-year. However, operating profit may decline by 1.7% year-on-year. Kotak Institutional Equities forecasts a 16.8% year-on-year increase in profit but a 4.1% quarter-on-quarter decrease. They also expect a 9.2% year-on-year rise in NII, with NIM declining by 28 basis points year-on-year and 8 basis points quarter-on-quarter.
Background
Analysts predict slippages of approximately ₹4,700 crore, primarily driven by retail loans, which could represent about 1.5% of total loans. The commentary on asset quality is expected to remain positive, with key discussion areas likely to include loan growth outlook and NIM progression.
The anticipated decline in NIM could affect bank stocks, particularly in the private sector banking space, as investors assess the impact on profitability. The focus will be on how competitive funding costs influence margins and overall financial health.
Watch for the upcoming earnings report on July 18, which will provide insights into Axis Bank's performance and future outlook.