88% Fall In Profit of Axis Bank in Q4 Result Expected
Axis Bank is gearing up to announce its March quarter earnings on Thursday. It is India’s third-largest private lender.
Lender is likely to put up a dismal show according to analysts. It is mired in a controversy owing to a surge in bad loans and over CEO Shikha Sharma’s tenure.
As per the report of some brokerages, private banks are expected to report 4 per cent profit growth yoy, dragged down by corporate-centric lenders such as ICICI and Axis Bank.
Veteran experts also believe that corporate-tilted private banks will continue to witness NPL accretion at elevated levels. They stated that it is expected from private banks to upfront a large part of unrecognized stress in the fourth quarter and remaining in FY19. Retail-consumer-focused PBs will likely continue their growth trend, riding on strong retail credit demand and better asset quality in most retail finance segments.
Axis Bank has 3.8 per cent of its loans in the watch list category. The RBI circular has stipulated timelines towards resolution of these accounts. It, however, requires banks to create accelerated provisioning towards these loans. “We thus have factored in elevated slippages and credit cost for Q4 FY18,” it noted.