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Informist, Wednesday, Oct. 15, 2025

 

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--Axis Bank Jul-Sept net profit INR 50.90 bln 
--Analysts saw Axis Bank Jul-Sept net profit at INR 59.30 bln 
--Axis Bank Jul-Sept net profit INR 50.90 bln vs INR 69.18 bln year ago 
--Axis Bank Jul-Sept total income INR 375.95 bln vs INR 371.42 bln year ago 
--Axis Bank Jul-Sept provisions INR 35.47 bln vs INR 22.04 bln year ago 

--Axis Bank gross NPA ratio 1.46% as on Sept 30 vs 1.57% quarter ago 
--Axis Bank net NPA ratio 0.44% as on Sept 30 vs 0.45% quarter ago 
--Axis Bank Basel-III capital adequacy ratio 16.55% as on Sept 30 
--Axis Bank Apr-Sept net profit INR 108.96 bln vs INR 129.52 bln year ago 
--Axis Bank Apr-Sept total income INR 759.16 bln vs INR 729.86 bln year ago 
--Axis Bank Jul-Sept net interest income INR 137.45 bln, up 2% on year 
--Axis Bank Jul-Sept net interest margin 3.73% vs 3.80% qtr ago 
--Axis Bank Jul-Sept average liquidity coverage ratio at 119% 
--Axis Bank: Excess SLR of INR 1.01 tln as on Sept 30 
--Axis Bank: Total deposits INR 12.03 tln as on Sept 30, up 11% on year 
--Axis Bank: Net advances INR 11.17 tln as on Sept 30, up 12% on year 
--Axis Bank: Retail advances INR 6.35 tln as on Sept 30, up 6% on year 
--Axis Bank: SME advances INR 1.32 tln as on Sept 30, up 19% on year 
--Axis Bank: Corporate advances INR 3.50 tln as on Sept 30, up 20% on year 
--Axis Bank Jul-Sept cost of deposits 4.83% vs 5.07% qtr ago, 5.08% year ago 
--Axis Bank Jul-Sept cost of funds 5.15% vs 5.39% qtr ago, 5.45% year ago 
--Axis Bank: Around 72% of retail loan book is secured 
--Axis Bank Jul-Sept fresh slippages INR 56.96 bln vs INR 44.43 bln year ago 
--Axis Bank Q2 recoveries, upgrades INR 28.87 bln vs INR 20.69 bln year ago 
--Axis Bank Jul-Sept write-offs INR 32.66 bln vs INR 31.19 bln year ago 
--Axis Bank: Provision coverage ratio 70% as on Sept 30 vs 71% qtr ago 

--Axis Bank OKs amended deposit agreement including amendments governing GDR

 

By Vaishali Tyagi

 

MUMBAI – Axis Bank reported the sharpest fall in its net profit in 19 quarters in the September quarter due to a surge in its provisions because of deteriorating asset quality. However, a year-on-year rise in the lender's income from investments helped limit the fall in profit. The bottom line of the private sector bank declined sequentially due to the fall in other income. 

 

Axis Bank's net profit fell by over 26% on year to INR 50.90 billion in the September quarter. Sequentially, the net profit fell by over 12%. The bank's net profit was lower than the analysts' estimate of INR 59.30 billion. Provisions and contingencies of the bank increased by around 61% from a year ago to INR 35.47 billion in Jul-Sept.

 

The bank's fresh slippages in the September quarter rose to INR 56.96 billion from INR 44.43 billion a year ago. The bank wrote off INR 32.66 billion in the September quarter, which is higher than the INR 27.78 billion in the previous quarter and also marginally higher than INR 31.19 billion in the same quarter of last year. However, the bank's upgrades and recoveries in the Jul-Sept quarter totalled INR 28.87 billion, up from INR 21.47 billion in the previous quarter, which helped to reduce the provisions on a sequential basis. 

 

The net slippage ratio of the bank was at 1.05% as of Sept. 30, up 9 basis points from a year ago and the gross slippage ratio rose 33 bps to 2.11%. Axis Bank's gross non-performing assets ratio rose two basis points on year and 11 bps on quarter to 1.46% as on Sept. 30. The net non-performing assets ratio was at 0.44%.

 

A slight rise in operating expenditure also weighed on the bank's net profit. The bank's operating expenses rose nearly 5% on year to INR 99.57 billion. Within the operating expenditure, the bank's other operating expenditure was at INR 68.39 billion, up 7% on-year. The employee costs remained broadly unchanged on year at INR 31.18 billion, while they fell over 4% on quarter. Total expenses rose nearly 3% on year to INR 271.8 billion in Jul-Sept.  

 

A slight fall in other income also weighed on the bank's bottom line. The bank's other income fell 1% year-on-year to INR 66.25 billion in the September quarter. The other income also fell sequentially by nearly 9%. A significant fall in trading income weighed on the bank's other income. Trading income fell by more than half on year to INR 4.98 billion in the September quarter from INR 11.11 billion a year ago. In other income, the bank's fee income rose 10% on year to INR 60.37 billion. 

 

The total income of the bank rose over 1% on year to INR 375.95 billion in Jul-Sept, while it fell nearly 2% on quarter. The bank's income from investments rose 8% on year to INR 58.92 billion. 

 

Axis Bank's Basel III capital adequacy ratio stood at 16.55% as on Sept. 30, down from 16.61% a year ago. The private sector bank's provision coverage ratio stood at 70%, down from 71% a quarter ago and 77% a year ago. The average liquidity ratio of the bank in the September quarter was 119%, unchanged from a quarter ago. Axis Bank said it held excess statutory liquidity ratio bonds of INR 1.01 trillion as of Sept. 30. 

 

The bank's net interest income rose 2% on year to INR 137.45 billion. The bank's net interest margin was 3.73% in the September quarter, down from 3.80% in the June quarter. 

 

On the business front, the bank's advances stood at INR 11.17 trillion as of Sept. 30, up 12% on year. Out of which retail advances constituted the most significant portion at INR 6.35 trillion, up 6% on year. Corporate advances were at INR 3.50 trillion, up 20% on year and loans to small and medium enterprises were at INR 1.32 trillion, up 19%. Around 72% of its retail loans were secured, the bank said. 

 

The current account savings account deposits of Axis Bank rose 9% on year to INR 4.79 trillion as of Sept. 30. The total deposits of the bank rose 11% on year to INR 12.03 trillion as of Sept. 30, with term deposits rising 12% to INR 7.24 trillion. The current account savings account deposit ratio as a percentage of total deposits fell to 40% from 41% in the corresponding quarter last year.

 

The bank's cost of funds in Jul-Sept fell to 5.15% from 5.39% a quarter ago and 5.45% a year ago. The bank's cost of deposits declined to 4.83% in the September quarter from 5.07% in the previous quarter and 5.08% in the same quarter last year. 

 

Axis Bank's net profit in Apr-Sept fell by nearly 16% on year to INR 108.96 billion. The bank's total income during the period rose 4% on year to 759.16 billion. The private sector bank released its results post-market hours.

 

The board of Axis Bank approved the amended and restated deposit agreement, pertaining to the grant of voting rights by the bank to the holders of the Global Depositary Receipts, subject to regulations.

 

Wednesday, shares of the bank ended at INR 1,169.60 on the National Stock Exchange, down 0.6% from the previous close.  End

 

Edited by Saji George Titus

 

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