Here’s a analysis of Axis Bank’s Q3 results for the financial year 2024-25, based on the latest information:
1. Net Profit
- Quarterly Performance: Axis Bank reported a net profit of ₹6,304 crore, reflecting a 4% increase year-on-year (YoY) from ₹6,071 crore in Q3 FY24.
- Sequential Comparison: The net profit decreased by 9% compared to ₹6,918 crore in the previous quarter (Q2 FY25).
2. Total Income
- Income Growth: Total income rose to ₹36,926 crore in Q3 FY25, up from ₹33,516 crore in the same quarter last year .
3. Net Interest Income (NII)
- NII Increase: NII grew by 9% YoY to ₹13,606 crore, although this was considered muted due to slower growth in advances .
- Net Interest Margin (NIM): The NIM stood at 3.93%, showing a slight decline of 6 basis points from the previous quarter and 8 basis points from the same period last year .
4. Loan Growth and Advances
- Total Advances: The bank’s total advances increased by 9% YoY to reach ₹10.14 trillion, with retail loans contributing significantly .
- Retail Loan Performance: Retail loans grew by 11% YoY, accounting for 60% of total advances. Specific growth rates included:
- Home loans: +3% YoY
- Personal loans: +17% YoY
- Credit card advances: +8% YoY
- Small business banking: +20% YoY
- Rural loans: +17% YoY .
5. Asset Quality
- Gross Non-Performing Assets (NPAs): Gross NPAs stood at 1.46%, slightly up from 1.44% in Q2 FY25, indicating stable asset quality despite fresh slippages .
- Fresh Slippages: Fresh slippages amounted to ₹5,432 crore, marking a significant increase of 46% YoY and a sequential rise of 22.25% .
6. Loan Loss Provisions
- Provisions Increase: Loan loss provisions rose to ₹2,185 crore in Q3 FY25 compared to ₹691 crore in Q3 FY24 and ₹1,441 crore in Q2 FY25 .
7. Deposits Growth
- Total Deposits: Deposits grew by 9% YoY, with current account deposits increasing by 8%, while savings account deposits remained flat .
- CASA Ratio: The share of Current Account Savings Account (CASA) deposits in total deposits was reported at 39% .
8. Management Commentary
- CEO Amitabh Chaudhry highlighted the bank’s focus on digital and rural banking as key growth drivers and emphasized their commitment to sustainability and inclusivity as part of their strategic vision for 2025 .
Conclusion
Axis Bank’s Q3 FY25 results show moderate growth in net profit and total income alongside stable asset quality. However, challenges remain with increased loan loss provisions and fresh slippages impacting overall performance. The bank’s focus on retail lending and digital initiatives positions it well for future growth despite current headwinds in the banking sector.
