Axis Bank’s shares fell by nearly 6% in Thursday’s trading session, a day after the bank announced its Q1 results for FY25. The bank reported a net profit of Rs 6,035 crore for the quarter, an increase from Rs 3,452 crore in the same period last year and exceeding analysts’ estimates of Rs 5,797 crore.
However, the profit showed a sequential decline of 15% from Rs 7,130 crore in the previous quarter.
The bank’s asset quality raised concerns, with gross non-performing assets (GNPA) increasing by 11 basis points to 1.54% and net non-performing assets (NNPA) up by 3 basis points to 0.34%.
Axis Bank’s net interest income (NII) rose to Rs 13,448 crore, up from Rs 11,959 crore a year ago, slightly exceeding expectations. The net interest margin (NIM) was 4.05%, slightly down from 4.10% last year.
The bank saw a 13% year-on-year increase in total deposits, with current account deposits up by 12% and total term deposits by 20%. Current account and savings account (CASA) deposits made up 42% of total deposits. Advances grew by 14% year-on-year and 2% quarter-on-quarter, reaching Rs 9.80 lakh crore, with retail loans up by 18% to Rs 5.85 lakh crore, representing 60% of the bank’s net advances.
As of 9:30 am, Axis Bank’s shares were trading 5.67% lower at ₹1,168.95 on the NSE. The decline in share price may be attributed to concerns over the deterioration in asset quality and elevated slippages, which increased by 38% quarter-on-quarter.
