Axis Bank to report Q2 results today. Here's what leading brokerages expect

Subdued loan growth and flat net interest margin (NIM) could dull the September quarter earnings of Axis Bank, which is slated to report its September quarter earnings for the financial year 2019-20 (Q2FY20) on Monday, October 21.

Analysts, however, seem to be divided on the growth in net profit due to ambiguity over whether the bank would provide a one-time mark-down in its deferred tax asset (DTA) or would the mark-down be spread evenly over the financial year.

Consider this: Analysts at Nirmal Bang peg the PAT at Rs 2,186 crore, up 177 per cent year-on-year (YoY) if the mark-down is evenly spread in FY20. The profit, however, reduces to just Rs 49.5 crore, down 930 per cent, if the DTA is marked down in Q2.

In the June quarter of FY20, the private lender reported a PAT of Rs 1,370.1 crore. The same was Rs 789,6 crore in the September quarter of the previous fiscal. The net interest income (NII) came in at Rs 5,843.7 crore in Q1FY20, and was Rs 5,232 crore in Q2FY19. The private lender reported a revenue of Rs 9,712.4 crore in the previous quarter of the current fiscal.

So far in 2019, the bank has outperformed the benchmark indices at the bourses. The stock of the bank has advanced 15 per cent, as against an 8 per cent rise in the S&P BSE Sensex and S&P BSE Bankex.

Axis Bank