Axis Bank has announced a net profit of Rs 6,035 crore for the first quarter of FY25, marking an increase from Rs 3,452 crore in the same period last year. This figure exceeded the average estimate of Rs 5,797 crore predicted by analysts. However, the profit fell 15% sequentially from Rs 7,130 crore in the previous quarter.
The bank’s asset quality showed signs of strain, with gross non-performing assets (GNPA) rising 11 basis points (bps) to 1.54% and net non-performing assets (NNPA) up by 3 bps to 0.34%. Year-on-year, GNPA and NNPA improved by 42 bps and 7 bps, respectively. Chief Financial Officer Puneet Sharma noted that there was pressure on asset quality due to seasonal factors affecting the retail agricultural business.
Net interest income (NII) for the quarter rose to Rs 13,448 crore, up from Rs 11,959 crore a year ago, slightly above the expected Rs 13,361 crore. The net interest margin (NIM) stood at 4.05%, compared to 4.10% last year.
The bank’s total deposits grew by 13% year-on-year, with current account deposits increasing by 12% and total term deposits by 20%. The share of current account and savings account (CASA) deposits was 42% of total deposits. Advances grew by 14% year-on-year and 2% quarter-on-quarter, reaching Rs 9.80 lakh crore. Retail loans increased by 18% year-on-year to Rs 5.85 lakh crore, making up 60% of the bank’s net advances.
The bank also reported a 61% growth in unified payments interface (UPI) transactions. Despite the strong financial performance, Axis Bank’s shares closed at Rs 1,239.75, down 1.83% on the BSE.
