MUMBAI, Oct. 14 -- Axis Bank will set the tone for the banking sector's September-quarter earnings when it reports results on Wednesday, with analysts expecting another subdued quarter for lenders weighed down by narrowing net interest margins, sluggish deposit growth, and weak treasury gains.

Across brokerages, a consensus is emerging that the September quarter will likely be the weakest for banks this fiscal year, before margins begin to stabilize in the second half, aided by lower deposit costs and a seasonal uptick in loan demand.

Among large private-sector lenders, Axis Bank is expected to post the sharpest sequential decline in margins in the September quarter-reflecting the lagged transmission of repo rate cuts-even as credit gro...