Axis Bank, one of India’s top private sector banks, announced its financial results for the March quarter (Q4) of the financial year 2024-25 (FY25) on Thursday, April 24. While the bank showed strong growth in several areas like loans and deposits, its net profit saw a small dip compared to the same time last year.
Small Dip in Net Profit
Axis Bank reported a net profit of ₹7,117.50 crore for the March 2025 quarter. This is a slight decline of 0.20% compared to ₹7,129.67 crore it earned in the same quarter last year. Despite the small drop, the bank maintained a strong performance in other areas.
Interest Income and Net Interest Margin Rise
The total interest earned by the bank during the quarter increased by 6.90% year-on-year (YoY) to ₹31,242.51 crore, up from ₹29,224.54 crore last year.
The bank’s Net Interest Income (NII), which is the difference between interest earned and interest paid, grew by 6% YoY to ₹13,811 crore. The Net Interest Margin (NIM), which shows how efficiently the bank earns from its interest-based activities, was 3.97% for the quarter. This is a small improvement of 4 basis points (bps) over the previous quarter.
Operating Profit and Costs
The bank’s operating profit grew by 2% YoY to ₹10,752 crore. However, operating expenses also increased by 6% YoY, which slightly affected the overall profit growth.
Provisions and Loan Losses
For the March quarter, Axis Bank kept aside ₹1,359 crore for provisions and contingencies—funds reserved to cover potential risks. Out of this, ₹1,369 crore was specifically for loan losses.
The bank also has a total provision buffer of ₹11,957 crore, which includes standard and additional provisions beyond just NPAs (non-performing assets). This gives the bank a standard asset coverage ratio of 1.15%.
Axis Bank mentioned that its total provision coverage ratio (PCR)—including specific, standard, and extra provisions—stood at a strong 157% of its gross NPAs as of March 31, 2025.
Balance Sheet and Deposit Growth
The bank’s overall balance sheet grew by 9% YoY and stood at ₹16.09 lakh crore at the end of March 2025.
Total deposits rose by 10% YoY and 7% quarter-on-quarter (QoQ). The share of CASA (Current Account and Savings Account) deposits increased to 41%, up from 39% in the previous quarter, showing stronger customer engagement in low-cost funds.
Loan and Credit Growth
Axis Bank’s total advances (loans) reached ₹10.41 lakh crore, growing 8% YoY and 3% QoQ.
- Retail loans, which include personal loans, home loans, and credit cards, stood at ₹6.23 lakh crore, making up 60% of the total loan book.
- Secured retail loans accounted for 72%, showing that most loans are backed by collateral.
- Home loans saw a modest 1% YoY growth, while personal loans grew 8% YoY, and credit card spending increased by 4% YoY.
Growth in SME and Corporate Lending
The SME (Small and Medium Enterprises) loan portfolio also showed healthy growth, increasing by 14% YoY and 4% QoQ to ₹1.18 lakh crore. The bank stated that its SME portfolio is well-diversified across different regions and sectors.
