Axis Bank Q3 Preview: PAT Likely to Decline 8% YoY on Margin Pressure; Loan Growth to Recover
**Axis Bank Q3 Preview: Volumes vs. Margins**
**Overview**
Axis Bank is poised for a mixed third-quarter performance. While the lender demonstrates robust balance sheet expansion driven by healthy volumes, profitability faces significant headwinds from continued margin compression.
**Financial Outlook**
Net Interest Income (NII) is projected to increase by approximately **4%** year-on-year. However, the pressure on margins is expected to impact the bottom line, with Profit After Tax (PAT) likely declining by around **8%**.
**Operational Growth**
Credit demand remains resilient for the private lender. Loan growth is anticipated to rebound to nearly **14%** year-on-year. Simultaneously, deposit accretion is outpacing the broader industry average, supporting overall liquidity and funding stability.