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Informist, Thursday, Jul. 17, 2025

 

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--Axis Bank Apr-Jun net profit INR 58.06 bln 
--Analysts saw Axis Bank Apr-Jun net profit at INR 63.68 bln 
--Axis Bank Apr-Jun net profit INR 58.06 bln vs INR 60.35 bln year ago 
--Axis Bank Apr-Jun total income INR 383.22 bln vs INR 358.44 bln year ago 
--Axis Bank Apr-Jun provisions INR 39.48 bln vs INR 20.39 bln year ago 
--Axis Bank gross NPA ratio 1.57% as on Jun 30 vs 1.28% quarter ago 
--Axis Bank net NPA ratio 0.45% as on Jun 30 vs 0.33% quarter ago 
--Axis Bank Basel-III capital adequacy ratio 16.85% as on Jun 30 
--Axis Bank Apr-Jun net interest income INR 135.60 bln, up 1% on year 
--Axis Bank Apr-Jun trading income INR 14.20 bln, up 249% on year 
--Axis Bank: CASA ratio at 40% as on Jun 30 
--Axis Bank Apr-Jun net interest margin 3.80%, down 17 bps on quarter 
--Axis Bank: Apr-Jun cost of funds 5.39% vs 5.50% qtr ago, 5.44% year ago 
--Axis Bank Apr-Jun average liquidity coverage ratio at 119% 
--Axis Bank: Hold excess SLR bonds INR 966.08 bln as on Jun 30 
--Axis Bank: Issued 790,000 new credit cards in Apr-Jun 
--Axis Bank: Total deposits at INR 11.62 tln as on Jun 30, up 9% on year 
--Axis Bank: Advances at INR 10.60 tln as on Jun 30, up 8% on year 
--Axis Bank: Retail advances at INR 6.23 tln as on Jun 30, up 6% on year 
--Axis Bank: SME advances at INR  1.21 tln as on Jun 30, up 16% on year 
--Axis Bank: Corporate advances at INR 3.16 tln as on Jun 30, up 9% YoY 
--Axis Bank: Apr-Jun cost of deposits 5.07% vs 5.19% qtr ago, 5.08% year ago 
--Axis Bank: Around 72% of retail loan book is secured 
--Axis Bank: Apr-Jun retail credit card spends 435.17 INR bln, up  2% YoY 
--Axis Bank: Apr-Jun credit cost 1.70% vs 0.84% qtr ago, 1.19% year ago 
--Axis Bank: Apr-Jun fresh slippages INR 82 bln vs INR 47.93 bln year ago 
--Axis Bank: Apr-Jun recoveries, upgrades INR 21.47 bln vs INR 15.03 bln year ago 
--Axis Bank: Apr-Jun write-offs INR 27.78 bln vs 22.06 bln year ago 
--Axis Bank: Provision coverage ratio at 71% as on Jun 30 vs 75% qtr ago 
 

 

By Sourabh Kumar

 

MUMBAI – Axis Bank's net profit fell in the June quarter due to a sharp increase in its provisions, which nearly doubled from last year. The bottom line of the private sector bank declined significantly sequentially, also dragged down by provisions, which almost tripled from the previous quarter. However, a robust year-on-year rise in the lender's other income helped limit the fall in its net profit. 

 

Axis Bank's net profit fell 3.8% on year to INR 58.06 billion in the June quarter. Sequentially, the net profit fell 18.4%. The bank's net profit was also lower than the analysts' estimate of INR 63.68 billion. Provisions and contingencies of Axis Bank increased by around 94% from a year ago and 190% from a quarter ago to INR 39.48 billion in Apr-Jun.

 

The bank's specific loan loss provisions were INR 39 billion in the June quarter. Axis Bank said INR 8.21 billion of provisions and contingencies were due to "technical impact". Fresh slippages of Axis Bank in the June quarter surged to INR 82 billion from INR 48.05 billion in the previous quarter. The bank wrote off INR 27.78 billion in the June quarter, which is lower than the INR 33.75 billion in the previous quarter but higher than the INR 22.06 billion in the same quarter of last year. The bank's upgrades and recoveries in the June quarter totalled INR 21.47 billion, down from INR 27.90 billion in the previous quarter, but up from INR 15.03 billion a year ago.

 

The net slippage ratio of the bank stood at 2.33% as of Jun. 30, and the gross slippage ratio was 3.13%. Axis Bank's gross non-performing assets ratio rose three basis points on year and 29 bps on quarter to 1.57% as on Jun. 30. The net non-performing assets ratio rose 11 bps on year and 12 bps on quarter to 0.45%. 

 

The bank's other income grew 25.5% year-over-year to INR 72.58 billion in the June quarter, which limited the decline in the bank's net profit. Sequentially, the other income rose 7.1%. A surge in trading income provided a boost to the bank's other income, which primarily consisted of fee income. Trading income rose almost 250% on year to INR 14.20 billion in the June quarter. The bank's fee income rose 10% on year to INR 57.46 billion. The bank's income on investments rose 10% on year to INR 61.43 billion. However, sequentially, the increase was a meagre 0.8%. The total income of the bank rose 6.9% on year to INR 383.22 billion in Apr-Jun.

 

Axis Bank's Basel III capital adequacy ratio stood at 16.85% as on Jun. 30, up 20 bps from a year ago, but lower than 17.07% in the previous quarter. The private sector bank's provision coverage ratio, excluding technical write-offs, stood at 71%. The average liquidity ratio of the bank in the June quarter was 119%. 

 

The bank's net interest income rose 1% on year to INR 135.60 billion. The bank's net interest margin was 3.80% in the June quarter, down from 3.97% in the March quarter. Analysts had expected margins to fall in the June quarter because the Reserve Bank of India cut the benchmark repo rate by 100 bps between February and June. The pressure on net interest margin is expected to be across the industry. 

 

The bank's credit cost increased to 1.70% in the June quarter from 0.84% in the previous quarter and 1.19% a year ago. The bank's cost of funds in Apr-Jun fell to 5.39% from 5.50% a quarter ago and 5.44% a year ago. The bank's cost of deposits declined to 5.07% in the June quarter from 5.19% in the previous quarter and 5.08% in the same quarter last year.

 

The bank's advances stood at INR 10.60 trillion as of June 30, of which retail advances constituted the most significant portion at INR 6.23 trillion. It was followed by corporate advances at INR 3.16 trillion, up 9% on year and loans to small and medium enterprises at INR 1.21 trillion. Around 72% of its retail loans were secured, the bank said. 

 

The current account savings account deposits of Axis Bank rose 5% on year to INR 4.68 trillion as on Jun. 30. The current account savings account deposit ratio fell to 40% from 42% in the corresponding quarter last year. The total deposits of the bank rose 9% on year to INR 11.62 trillion as of Jun. 30, with term deposits rising 12% to INR 6.93 trillion. 30. Axis Bank said it held excess statutory liquidity ratio bonds of INR 966.08 billion as on Jun. 30. 

 

The bank issued around 790,000 credit cards in the June quarter. Of the overall credit card spends of INR 683.13 billion, the retail segment accounted for INR 435.17 billion in the June quarter. The bank's personal loans increased 5% year-on-year to INR 770.99 billion. However, the bank's rural loans fell 5% on quarter to INR 931.40 billion in Apr-Junr. Shares of Axis Bank closed 0.7% lower at INR 1,159.80 on the National Stock Exchange Thursday.  The bank announced the results after market hours. End

 

Edited by Saji George Titus

 

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