Axis Bank is anticipated to bounce back on a yearly basis after facing a net loss due to its merger with Citi in the year-ago quarter. Financial reports suggest that in the December quarter of FY24, the bank recouped by reporting a Profit After Tax (PAT) of Rs 6,071 crore, showcasing a positive trajectory in its financial performance.
For the upcoming Q4FY24 results, several brokerage firms like Nomura, BNP Paribas, and PL have provided their predictions regarding Axis Bank's financial outlook. Nomura expects a growth in net profit by 3% quarter-on-quarter and foresees a rise in metrics like net interest income, pre-provision profit, loan book, and deposits. Similarly, BNP Paribas projects a slight decline in core net profit but an increase in net interest income compared to the previous quarter.
Furthermore, PL also anticipates growth in key financial indicators such as core profit, net interest income, and pre-provision operating profit for Axis Bank in the upcoming quarter. The brokerage foresees a rise in loan book and a decrease in net interest margin due to factors like the cost of deposits.
Looking ahead, analysts predict stable trends in slippages and asset quality for the bank, with the expectation that Axis Bank will focus on provisions related to the merger with Citi. Discussions around the integration of Citi, growth trends, and net interest margin are expected to be crucial areas of focus as the bank moves forward in the financial landscape.