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Axis Bank’s FY27 loan growth estimate raised to 20%, FY28 forecast held at 15%

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Axis Bank’s FY27 loan growth estimate raised to 20%, FY28 forecast held at 15%

Axis Bank’s FY27 loan growth estimate raised to 20%, FY28 forecast held at 15%

The bank’s net interest margin (NIM) are expected to improve over the next two quarters as the drag from FCNR lending eases and liquidity is deployed more efficiently.

Axis Bank’s loan growth is projected to reach around 20% in FY27, while the forecast for FY28 remains unchanged at about 15%, as the underlying retail lending business has yet to show a meaningful pickup. Loans grew 9% sequentially and 23% year on year in Q2FY27, supported by foreign currency non resident (FCNR) loans and growth in small and medium enterprises (SMEs) and wholesale lending. Retail loan growth, excluding FCNR, remained muted at 3% sequentially despite retail disbursements sustaining 22% year on year growth. The bank’s net interest margin (NIM) are expected to improve over the next two quarters as the drag from FCNR lending eases and liquidity is deployed more efficiently, according to an ICICI Securities report. Overall NIM declined 10 basis points sequentially to 3.36% in Q2FY27, while NIM excluding FCNR remained stable at 3.47%. The brokerage raised its FY27 loan growth estimate to around 20% but retained its FY28 forecast at around 15%, pending clearer signs of a recovery in retail lending. Advt

Deposits grew 6% sequentially and 21% year on year, aided by FCNR mobilisation of around Rs 1 trillion. The bank sanctioned Rs 120 billion under the Emergency Credit Line Guarantee Scheme (ECLGS), equivalent to Rs 107 billion in loans, of which about 80% had been disbursed.


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