 "Axis Bank Q2FY25 results: Net profit increases 18% to Rs 6,918 cr")
India's Axis Bank reported a bigger-than-expected rise in second-quarter profit on Thursday, helped by higher core lending income on the back of strong credit demand.
The country's fourth-largest private lender by market capitalisation said its standalone net profit - which excludes its subsidiaries - rose 18 per cent to Rs 6,918 crore ($823.25 million) for the quarter ended Sept. 30.
Analysts had expected, on average, Rs 6,527 crore, according to estimates compiled by LSEG.
Net interest income, the difference between interest earned and paid, rose 9.5 per cent to Rs 13,483 crore, as per Reuters' calculations.
Loans given by Indian banks have been growing at double-digit percentages since April 2022, boosted by a rise in consumer spending as banks focus on retail loans to tap consumer credit demand.
However, deposit growth has lagged, which is forcing lenders to either slow their loan growth or raise more deposits.
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Gross non-performing assets ratio, a key gauge of lenders' asset quality, was at 1.44 per cent at the end of September, compared with 1.54 per cent three months earlier, and 1.73 per cent a year ago.
Axis Bank's shares ended 1.9 per cent lower ahead of the results.
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