Axis Bank Q1 Results Highlights: Net Profit increases by 4% to ₹6,035 crore 

Synopsis

Axis Bank on July 24 reported 4% rise in net profit at ₹6,035 crore for Q1 FY25. The bank's asset quality worsened sequentially with gross non-performing assets up 11 basis points (bps) at 1.54% and net non-performing assets 3 bps up at 0.34%.

Axis Bank Q1 Results Highlights

On July 24, Axis Bank, a private lender, announced a 4% increase in net profit for Q1 FY25, amounting to ₹6,035 crore, surpassing market expectations. Eight brokerages had, on average, anticipated a net profit of ₹5,797 crore. However, sequentially, the bank's profit saw a 15% decline from ₹7,130 crore.

At the close of trading, Axis Bank share price were priced at ₹1239.75 each, a 1.83% decrease on the BSE.

The Mumbai-based bank experienced a sequential deterioration in asset quality, with gross non-performing assets (GNPA) rising by 11 basis points (bps) to 1.54% and net non-performing assets (NNPA) increasing by 3 bps to 0.34%. Year-on-year (YoY), the bank's GNPA and NNPA showed improvement, decreasing by 42 bps and 7 bps, respectively.

For the April-June quarter, Axis Bank's net interest income (NII) increased to ₹13,448 crore from ₹11,959 crore in the corresponding period of the previous year, exceeding brokerage expectations of ₹13,361 crore. The net interest margin (NIM) for Q1 FY25 was 4.05%, compared to 4.10% in the previous year.

The bank's total deposits increased by 13% year-on-year (YoY), with current account deposits rising by 12% and total term deposits growing by 20%. The current account and savings account (CASA) deposits made up 42% of the total deposits.

The bank's advances expanded by 14% YoY and 2% quarter-on-quarter (QoQ) to ₹9.80 lakh crore. Retail loans saw an 18% YoY growth, reaching ₹5.85 lakh crore, and constituted 60% of the bank's net advances.

Additionally, the bank achieved a 61% growth in unified payments interface (UPI) transactions.

Axis Bank Management Commentary

Amitabh Chaudhry, MD & CEO, Axis Bank said, “The last quarter was crucial in terms of getting all the teams to work together for the last leg of Citi integration. I am delighted that the integration is done and it was largely seamless given the size and scale of the transition."

About Axis Bank Ltd.

Axis Bank Ltd (Axis Bank) offers a range of personal and business banking services, along with other financial solutions. Its personal banking services encompass accounts, deposits, cards, loans, investment solutions, NRI services, and agriculture and rural banking.

Business banking at Axis Bank includes corporate accounts, corporate loans, capital market services, and trade and forex. Additionally, the bank offers treasury services such as foreign exchange, derivatives trading, and equity and mutual funds. Insurance solutions are also provided, covering life, health, travel, motor, and commercial purposes.