Axis Bank, a major private bank in India, posted a profit of ₹7,117.5 crore for the January-March 2025 quarter. This is slightly lower than the ₹7,129.7 crore profit it made in the same period last year. Analysts had expected a profit of ₹6,601.2 crore.
Loan growth was slower compared to the overall banking industry. Total loans given by the bank rose 8% from last year to ₹10.4 lakh crore. Retail loans grew 7% to ₹6.2 lakh crore, and corporate loans grew 8% to ₹2.9 lakh crore. Deposits increased by 10% to ₹11.7 lakh crore.
The bank’s net interest income — the difference between interest earned and interest paid — grew by 6% to ₹13,811 crore. However, the net interest margin (a measure of profitability) dropped to 3.97%, compared to 4.06% a year ago.
Amitabh Chaudhry, Managing Director of Axis Bank, said the bank focused more on profits than growth due to uncertain market conditions and tight liquidity in FY25. He added that things are looking better for FY26 and expects to see both profit and growth improve. The bank is being cautious about taking risks while aiming for steady and healthy growth.
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Provisions and contingencies, which are funds set aside for potential bad loans or losses, increased to ₹1,359.3 crore, compared to ₹1,185 crore last year.
On the positive side, the gross non-performing asset (NPA) ratio — a measure of bad loans — improved, falling to 1.28% from 1.43% a year ago. However, gross slippages (new bad loans) rose to ₹4,805 crore from ₹3,471 crore last year.
Pranav Gundlapalle, Head of Financials at Bernstein India, said that while Axis Bank’s loan and deposit growth were weaker than other banks for the second quarter in a row, the bank showed strong profit, better asset quality, and a solid balance sheet. This is partly because Axis Bank has a lower loan-to-deposit ratio and reduced reliance on borrowing.
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In summary, Axis Bank had a stable quarter with careful risk management, even though its growth was slower than peers.
