Axis Bank

Axis Bank has reported flat net profit at Rs 7117.50 crore for the quarter ended March 2025 (Q4FY2025). The bank has posted healthy 6% growth in net interest income (NII), while the core fee income of the bank also improved 13% in Q4FY2025. The Net Interest Margin (NIM) of the bank improved on sequential basis to 3.97% in Q4FY2025 from 3.93% in the previous quarter, while eased from 4.06% in the corresponding quarter of previous year.

On business front, the bank as has posted 9% growth in business with 8% increase in loan book. The asset quality of the bank has improved in Q4FY2025. Bank has reduced the credit to deposit ratio to 88.7% at end March 2025 from 90.3% at end March 2024. The CASA ratio of the bank has declined to 40.8% at end March 2025 from 43.0% at end March 2024.

Asset quality improves: The bank has improved asset quality in Q4FY2025.

The fresh slippages of loans stood at Rs 4805 crore in Q4FY2025 compared with 5432 crore in previous quarter and Rs 3471 crore in the corresponding quarter last year.

The recoveries and upgradations of NPAs was at Rs 2790 crore and the write-off of loans was at Rs 3375 crore in Q4FY2025.

The standard restructured loan book of the bank declined to Rs 837 crore end March 2025.

Provision coverage ratio was steady at 94% at end March 2025 compared to 93% a quarter ago and 94% a year ago.

The capital adequacy ratio of the bank stood at 17.1% with Tier I ratio at 15.1% at end March 2025.

The risk weighted assets of the bank has increased 12% YoY to Rs 1159150 crore end March 2025,

Asset Quality Indicators: Axis Bank
'	Mar-25	Dec-24	Sep-24	Jun-24	Mar-24	Variation
						QoQ	YoY
Gross NPA (Rs Crore)	14490.11	15850.27	15466.23	16211.34	15127.12	-9	-4
Net NPA (Rs Crore)	3685.45	3774.79	3612.47	3552.98	3247.47	-2	13
% Gross NPA	1.28	1.46	1.44	1.54	1.43	-18	-15
% Net NPA	0.33	0.35	0.34	0.34	0.31	-2	2
% PCR	94.00	93.00	94.00	94.00	94.00	100	0
% CRAR - Basel III	17.07	17.01	16.61	16.65	16.63	6	44
% CRAR - Tier I - Basel III	15.07	14.61	14.12	14.06	13.74	46	133
Variation in basis points for figures given in percentages and in % for figures in Rs crore

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Business Highlights:

Steady business growth: The business of the bank has increased 9% YoY to Rs 2213763 crore end March 2025, driven by 8% increase in advances to Rs 1040811 crore. Deposits moved up 10% to Rs 1172952 crore at end March 2025.

CASA deposits ratio improves sequentially: The CASA deposits of the bank increased 4% YoY to Rs 478188 crore at end March 2025. The current account deposits increased 6% to Rs 166799 crore, while saving account deposits rose 3% to Rs 311389 crore end March 2025. The CASA ratio declined to 40.8% at end March 2025 compared to 43.0% at end March 2024, while rose from 39.5% a quarter ago. The term deposits have increased 14% to Rs 694764 crore end March 2025.

Moderate loan growth: Advances growth was driven by retail loans rising 7% YoY to Rs 622897 crore at end March 2025, while MSME credit increased 14% to Rs 118521 crore at end March 2025. The corporate credit has moved up 8% to Rs 271471 crore end March 2025. The overseas credit rose 4% to Rs 27922 crore end March 2025.

Investment book of the bank increased 19% YoY to Rs 396142 crore at end March 2025.

Margins improve qoq: The bank has showed 7 bps YoY increase in cost of deposits to 5.50% in Q4FY2025. NIM fell 9 bps YoY, while improved 4 bps qoq to 3.97% in Q4FY2025.

Branch expansion: The bank has added 170 branches, while reduced 535 ATMs in Q4FY2025, taking overall tally to 5876 branches and 13941 ATM`s end March 2025.

Book value of the bank stood at Rs 580.2 per share at end March 2025, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 568.0 per share at end March 2025.

Quarterly Performance

NII rises as NIM improves sequentially: Bank has recorded 7% increase in the interest earned at Rs 31242.51 crore, while interest expenses increased 8% to Rs 17431.97 crore in Q4FY2025. NII improved 6% to Rs 13810.54 crore in the quarter ended March 2025.

Healthy growth in the core fee income: Bank has posted strong 13% growth in core fee income to Rs 6380 crore, while the other income jumped 149% to Rs 269 crore. However, the treasury income declined 83% to Rs 173 crore, leading to flat overall non-interest income at Rs 6779.52 crore in the quarter ended March 2025.

Expenses ratio rises: The operating expenses of the bank increased 6% to Rs 9837.69 crore, as other expenses moved up 8% to Rs 6876.15 crore, while employee expenses rose 1% to Rs 2961.54 crore in Q4FY2025. Cost to income ratio increased to 47.8% in Q4FY2025 compared with 46.9% in Q4FY2024, helping the Operating Profit to increase 2% to Rs 10752.37 crore.

Provisions and contingencies rises: The bank has showed 15% rise in provisions to Rs 1359.35 crore. The loan loss provisions jumped 65% to Rs 1369 crore, while standard asset provisions rebounded to Rs 152 crore. However, the bank written back other provisions of Rs 161 crore in Q4FY2025.

Effective tax rate rose to 24.2% in Q4FY2025 from 23.8% in Q4FY2024. Net Profit came in flat YoY at Rs 7117.50 crore during quarter ended March 2025.

Subsidiaries' Performance

The Bank's domestic subsidiaries delivered steady performance with FY25 PAT of Rs 1768 crores, up 11% YOY.

Axis Finance has been investing in building a strong customer focused franchise. Its overall assets under finance grew 22% YOY. Retail book grew 28% YOY and constituted 47% of total loans. The focus in its wholesale business continues to be on well rated companies and cash flow backed transactions. Axis Finance remains well capitalized with total Capital Adequacy Ratio of 20.90%. The book quality remains strong with net NPA at 0.37%. Axis Finance FY25 PAT was Rs 676 crore, up 11% YOY from Rs 610 crore in FY24.

Axis AMC's overall QAAUM grew 17% YOY to Rs 321506 crore. Its FY25 PAT was Rs 501 crore, up 21% YOY from Rs 414 crore in FY24.

Axis Capital FY25 PAT was Rs 161 crore, up 7% YOY from Rs 150 crore in FY24 and completed 44 ECM transactions in FY25.

Axis Securities revenues for FY25 grew 45% YOY to Rs 1656 crore. Its FY25 PAT grew 39% YOY and stood at Rs 419 crore.

Financial Performance FY2025:

Bank has posted 6% increase in net profit to Rs 26373.48 crore in the year ended March 2025 (FY2025). The net interest income increased 9% to Rs 54347.82 crore, while non-interest income moved up 13% to Rs 25257.06 crore, pushing up net total income by 10% to Rs 79604.88 crore in FY2025. The operating expenses increased 6% to Rs 37499.95 crore, while provision and contingencies galloped 91% to Rs 7758.35 crore, allowing profit before tax to increase 4% to Rs 34346.58 crore in FY2025. The cost-to-income ratio improved to 47.1% in FY2025 compared to 48.7% in FY2024. An effective tax rate declined to 23.2% in FY2025 compared to 24.8% in FY2024. The net profit has increased 6% to Rs 26373.48 crore in FY2025.

Axis Bank: Results
Particulars	2503 (3)	2403 (3)	Var %	2503 (12)	2403 (12)	Var %
Interest Earned	31242.51	29224.54	7	122677.04	109368.63	12
Interest Expended	17431.97	16135.54	8	68329.22	59474.15	15
Net Interest Income	13810.54	13089.00	6	54347.82	49894.48	9
Other Income	6779.52	6765.79	0	25257.06	22441.96	13
Net Total Income	20590.06	19854.79	4	79604.88	72336.44	10
Operating Expenses	9837.69	9319.09	6	37499.95	35213.28	6
Operating Profits	10752.37	10535.70	2	42104.93	37123.16	13
Provisions & Contingencies	1359.35	1185.31	15	7758.35	4063.09	91
Profit Before Tax	9393.02	9350.39	0	34346.58	33060.07	4
EO	0.00	0.00	-	0.00	0.00	-
PBT after EO	9393.02	9350.39	0	34346.58	33060.07	4
Provision for tax	2275.52	2220.72	2	7973.10	8198.64	-3
PAT	7117.50	7129.67	0	26373.48	24861.43	6
EPS*(Rs)	91.9	92.1	'	85.1	80.3	'
Adj BV (Rs)	568.0	478.3	'	568.0	478.3	'
* Annualized on current equity of Rs 619.54 crore. Face Value: Rs 2, Figures in Rs crore
Source: Capitaline Corporate Database

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