Axis Bank on Thursday reported flat growth in its net profit at Rs 7,117 crore in the fourth quarter of FY25 compared to Rs 7,130 crore in the same quarter of FY24, impacted by muted growth in other income. The profit number beat Street expectations as analysts polled by Bloomberg had estimated the bank to post Rs 6,381-crore profit in the quarter.
Net interest income grew 6% to Rs 13,811 crore in Q4 from Rs 13,089 crore in the year-ago period.
Its other income went up marginally to Rs 6,780 crore from Rs 6,766 crore in the same quarter previous year, due to fall in trading income. Trading income declined by 83% to Rs 173 crore during the quarter.
“The bank prioritised profitability over growth, considering the uncertain macros and tight liquidity environment dominating most of FY25, while continuing to meaningfully invest in making the franchise more sustainable,” said Amitabh Chaudhry, MD&CEO, Axis Bank in an earnings call. “As we enter FY26, we believe the operating environment is improving, which should help us drive both growth and profitability.”
The net interest margin improved to 3.97% in the fourth quarter from 3.93% in the third quarter but shrunk from 4.06% in the fourth quarter of previous year.
Deposits during the quarter rose 10% year-on-year to Rs 11.72 lakh crore. Term deposits rose 14% from last year to Rs 6.94 lakh crore, while current account and savings account (CASA) deposits accounted for 41% of the deposit portfolio, compared with 39% a quarter ago. The bank improved asset quality during the quarter with the gross non-performing assets (NPA) ratio falling to 1.28% as of March end this year, compared to 1.43% in the same quarter previous year. The net NPA ratio came at 0.33% in third quarter compared to 0.31% in the prior quarter. The bank’s gross slippages during the quarter stood at Rs 4,805 crore, compared with Rs 5,432 crore in the third quarter.
Recoveries and upgrades from NPAs during the quarter were Rs 2,791 crores. The bank in the quarter wrote off NPAs aggregating Rs 3,375 crore.