Axis Bank Q4 results: Net profit remains flat at ₹7,118 crore, NII up 6%

Axis Bank net interest income for Q4 FY25 rose 6 per cent to ₹13,811 crore, which was ₹13,089 crore for the same period of the previous financial year

Axis Bank reported net profit of ₹7,118 crore in the fourth quarter of FY25, aided by a 10 per cent quarter-on-quarter rise in current account and savings account deposits and a 7 per cent increase in total deposits.

 

The bank had reported ₹7,130 crore net profit in the fourth quarter of FY24.

 

Net interest income in the fourth quarter of FY25 rose 6 per cent to ₹13,811 crore, which was ₹13,089 crore in the fourth quarter of the previous financial year. The Net Interest Margin improved by four basis points quarter-on-quarter (Q-o-Q) to 3.97 per cent (and stood at 3.98 per cent for the full year).  The gross non-performing assets(GNPA) declined to 1.28 per cent in the Q4 of FY25, while the bank had reported 1.43 per cent GNPA in the corresponding quarter of the previous financial year.

 

Fee income grew by 12 per cent year-on-year (Y-o-Y) and 16 per cent quarter-on-quarter for Q4 FY25, with retail fee income up 22 per cent quarter-on-quarter and granular fees accounting for 94 per cent of total fees. Meanwhile, the core operating profit rose by 5 per cent quarter-on-quarter.

 

On a year-on-year basis, total deposits of the bank increased by 10 per cent. Term deposits were up 14 per cent on both year-on-year and quarter-on-quarter bases.

 

Axis Bank current accounts grew by 6 per cent on both year-on-year and quarter-on-quarter, while the savings accounts rose by 3 per cent Y-o-Y and 1 per cent Q-o-Q. 

 

Net advances grew by 8 per cent year-on-year and 3 per cent quarter-on-quarter, while the retail loans were up 7 per cent year-on-year and 3 per cent quarter-on-quarter.

 

The bank’s loan book for the small-and-medium-enterprise increased by 14 per cent Y-o-Y, and 4 per cent Q-o-Q. On the corporate loans front, the bank registered 8 per cent Y-o-Y rise.

 

The overall Capital Adequacy Ratio stood at 17.07 per cent, with a Common Equity Tier-1 ratio of 14.67 per cent, reflecting net accretion of 93 basis points for the year and 6 basis points during the quarter.

 

The bank maintained a strong position in the Unified Payments Interface payer Payment Service Provider space front with about 32 per cent market share by UPI volumes. 

For FY25, operating expense growth moderated to 6.5 per cent, while the operating profit rose by 13 per cent to ₹42,104 crores, Profit After Tax reached ₹26,373 crores (up 6 per cent Y-o-Y), and consolidated return on assets and return on equity were 1.77 per cent and 16.89 per cent, respectively.