Axis Bank Q2FY25 results: Net profit increases 18% to Rs 6,918 crore

Net interest margin drops slightly to 3.99 per cent compared to 4.05 per cent in the previous quarter, and 4.11 per cent in Q2FY24

Private sector lender Axis Bank on Thursday reported an 18 per cent year-on-year (YoY) jump in its net profit in the second quarter of financial year 2025 (Q2FY25), aided by robust increase in other income, including fee and trading income.

Net profit for the quarter stood at Rs 6,918 crore against Rs 5,864 crore in the corresponding quarter a year ago.

Net interest income (NII) of the lender in Q2FY25 stood at Rs 13,483 crore, up 9 per cent Y-o-Y, aided by healthy growth in advances.

Meanwhile, net interest margin -- a measure of profitability for banks – came in at 3.99 per cent compared to 4.05 per cent in the previous quarter, and 4.11 per cent in Q2FY24.

 

Loan loss provisions of the lender increased 42 per cent Y-o-Y to Rs 1,441 crore, but on a sequential basis it declined 43 per cent. Total provisions stood at Rs 2,204 crore in Q2FY25, compared to Rs 815 crore in the corresponding quarter a year ago, and Rs 2,039 crore in the previous quarter.

Fresh slippages stood at Rs 4,443 crore in Q2FY25 compared to Rs 4,793 crore in Q1FY25, and Rs 3,254 crore in Q2FY24.

Asset quality of the lender improved over last year and sequentially. Gross non-performing assets (NPAs) ratio of Axis Bank stood at 1.44 per cent, down 29 basis points (bps) and 10 bps sequentially. Similarly, net NPAs declined to 0.34 per cent.

The bank’s advances grew 11 per cent Y-o-Y and 2 per cent sequentially to Rs 9.99 trillion, with retail loans growing by 15 per cent Y-o-Y and 2 per cent sequentially to Rs 5.98 trillion and accounted for 60 per cent of the net advances of the bank.

While home loans grew 5 per cent Y-o-Y, personal loans grew by 23 per cent Y-o-Y, credit card advances grew 22 per cent Y-o-Y, small business banking grew 23% Y-o-Y. Rural loan portfolio grew 20% Y-o-Y, and corporate loan book grew 6 per cent Y-o-Y.

Amitabh Chaudhry, MD & CEO, Axis Bank said, ‘This quarter we balanced digital prowess and advancement with physical expansion and proximity to our customers. We have opened 150 new branches in the last three months, both urban and rural”.