Axis Bank will report its third-quarter earnings on Tuesday and the focus will be on lender's net slippages and bad loans.
- This quarter, analysts are working with a slippage of Rs 4,800 crore to Rs 5,000 crore, last quarter it was at Rs 2,800 crore. One needs to see how the slippages come out.
- In the previous quarter, the Rs 2,800 crore had 88 percent of the slippages coming in from the known level of watchlist. If the slippages come mainly from the watchlist then it will be positive.
- The asset quality movement will be seen closely, gross non-performing asset (NPA) was at 5.6 percent in the previous quarter. Analysts on street are working with a 30-35 basis points (bps) improvement in the gross NPA of the bank.
- The loan growth for the four out of five quarters has been in the region of 14-20 percent. Last quarter it dipped down to 11 percent so anything between 10 percent and 12 percent or above will be positive.
- The improvement in net interest margins (NIMs) will be positive.