Axis Bank Limited, the third-largest private sector bank in India, offers a wide range of financial services across various customer segments, including large and mid-corporates, MSMEs, agriculture, and retail. Its services span retail banking, wholesale banking, treasury operations, and corporate advisory. Treasury operations involve investments in sovereign and corporate debt, equities, derivatives, and foreign exchange. Retail services include lending, card services, internet banking, and NRI services, while corporate banking covers advisory, capital market services, and project appraisals. Axis Bank operates 5,706 domestic branches, with 130 new additions in Q3FY25.The Bank’s international presence includes eight offices, with branches in Singapore, Dubai (DIFC), and Gift City-IBU, along with representative offices in Dhaka, Dubai, Abu Dhabi, Sharjah, and an overseas subsidiary in London.
| Result Analysis: Axis Bank Ltd (CMP: Rs. 1022) | Result Update: Q3FY25 |
| Stock Details | |
| Market Cap. (Cr.) | 3,16,442 |
| Equity (Cr.) | 619.26 |
| Face Value | 2 |
| 52 Wk. high/low | 1,339.55/934 |
| BSE Code | 532215 |
| NSE Code | AXISBANK |
| Book Value (Rs) | 576.10 |
| Sector | Banks – Private Sector |
| Key Ratios | |
| GNPA (%) | 1.46 |
| NNPA (%): | 0.35 |
| ROE (%): | 18.4 |
| TTM EPS: | 85.22 |
| P/BV: | 1.8 |
| TTM P/E: | 11.84 |
| ROA (%) | 1.64 |
Result Highlights:
- Axis Bank reported an Interest Earned of ₹30,953.94 crore for Q3FY25, reflecting a growth of 10.7% compared to ₹27,961.14 crore in Q3FY24 on a YoY basis. On a QoQ basis, Interest Earned increased by 1.76% from ₹30,419.86 crore in Q2FY25, demonstrating consistent growth in earnings.
- The bank’s Net Interest Income (NII) for Q3FY25 stood at ₹13,606 crore, up 8.6% from ₹12,532 crore in Q3FY24 on a YoY basis. On a QoQ basis, NII grew by 0.9% from ₹13,483 crore in Q2FY25, reflecting a stable increase in core revenue generation.
- Axis Bank’s Net Interest Margin (NIM) for Q3FY25 was 3.93%, slightly lower compared to 4.01% in Q3FY24 on a YoY basis. On a QoQ basis, NIM showed a slight dip from 3.99% in Q2FY25, indicating marginal pressure on margins despite a positive growth trend in interest income.
- Axis Bank reported total deposits of ₹10,95,883 crore for Q3FY25, reflecting a growth of 9.1% compared to ₹10,04,900 crore in Q3FY24 on a YoY basis. On a QoQ basis, total deposits increased by 0.84% from ₹10,86,744 crore in Q2FY25, indicating steady growth in the bank’s deposit base.
- The CASA ratio for Axis Bank in Q3FY25 stood at 39%, reflecting a decline from 42% in Q3FY24 and a slight decrease from 40% in Q2FY25. This indicates a reduction in the proportion of low-cost deposits relative to total deposits, though the bank continues to maintain a competitive CASA ratio.
- The Gross NPA for Axis Bank in Q3FY25 stood at 1.46%, showing a decline from 1.58% in Q3FY24 on a YoY basis. However, it increased slightly from 1.44% in Q2FY25 on a QoQ basis, indicating a marginal rise in non-performing assets over the last quarter. And The Net NPA for Q3FY25 was 0.35%, reflecting a decline from 0.36% in Q3FY24 on a YoY basis. On a QoQ basis, Net NPA increased slightly from 0.34% in Q2FY25, indicating a slight uptick in net non-performing assets.
Financial Performance:
Shareholding Pattern:
| Particulars (In %) | Q3FY25 | Q3FY24 |
| Promoters Group | 8.23 | 8.20 |
| FIIs | 47.32 | 54.68 |
| DIIs | 37.48 | 28.83 |
| Public and others | 6.97 | 8.27 |
Management Commentary:
- The bank has moderated growth in unsecured retail segments, with personal loans growing 17% YoY and credit cards 8% YoY, focusing on controlling risk, maintaining asset quality, and ensuring sustainability amid rising delinquencies.
- Axis Bank takes a conservative approach to asset quality, with 100% provisioning on unsecured NPAs and stricter write-off policies, leading to higher slippages but ensuring long-term stability through effective credit cost management and asset recovery.
- Axis Bank reported a 14% YoY increase in core operating profit, driven by higher income and controlled expenses. Deposits grew 13%, with key loan segments (Small Business, SME, mid-corporate) growing 16%. The bank maintained strong balance sheet strength amidst slower business growth.
Outlook:
Axis Bank has shown steady growth, with a 10.7% YoY increase in Interest Earned and an 8.6% rise in Net Interest Income (NII), despite slight pressure on margins. Deposits grew 9.1% YoY, reflecting strong customer trust. While CASA ratio and NPAs have seen minor declines, the bank’s conservative stance on asset quality, including 100% provisioning on unsecured NPAs, supports long-term stability. The focus on controlled growth in unsecured retail segments mitigates risk, and robust growth in mid-corporates and SMEs strengthens the bank’s position. Investors can be optimistic about Axis Bank’s stable performance and cautious expansion, ensuring sustainable returns in the future.
Results:
| Particulars (In Cr) | Q3FY25 | Q2FY25 | Q3FY24 | QoQ% | YoY% | FY24 | FY23 | YoY% |
| Interest Earned | 30953.9 | 30419.9 | 27961.14 | 1.8 | 10.7 | 109368.6 | 85163.8 | 28.4 |
| Other Income | 5972.2 | 6721.9 | 5554.82 | -11.2 | 7.5 | 22442.0 | 16143.4 | 39 |
| Total Income | 36926.1 | 37141.7 | 33515.96 | -0.6 | 10.2 | 131810.6 | 101307.2 | 30.1 |
| Operating Expenses | 26392.3 | 26429.2 | 24374.72 | -0.1 | 8.3 | 94687.4 | 81748.7 | 15.8 |
| Operating Profit Before Prov. & Cont. | 10533.9 | 10712.5 | 9141.24 | -1.7 | 15.2 | 37123.2 | 19558.5 | 89.8 |
| Provisions & Contingencies | 2155.6 | 2204.1 | 1028.34 | -2.2 | 109.6 | 4063.1 | 2652.6 | 53.2 |
| EBT | 8378.2 | 8508.4 | 8112.9 | -1.5 | 3.3 | 33060.1 | 16905.9 | 95.6 |
| Provision for Taxes | 2074.5 | 1590.8 | 2041.8 | 30.4 | 1.6 | 8198.6 | 7326.2 | 11.9 |
| Net Profit | 6303.8 | 6917.6 | 6071.1 | -8.9 | 3.8 | 24861.4 | 9579.7 | 159.5 |
| EPS | 20.4 | 22.4 | 19.69 | -8.9 | 3.5 | 80.6 | 31.1 | 158.8 |
| Revenue by Segment (In Cr) | Q3FY25 | Q2FY25 | Q3FY24 | QoQ % | YoY % |
| Treasury | 7107.2 | 7998.3 | 7067.5 | -11.1 | 0.6 |
| Corporate/Wholesale Banking | 11667.1 | 11663.3 | 11301.4 | 0.0 | 3.2 |
| Retail Banking | 35786.7 | 35040.9 | 31499.0 | 2.1 | 13.6 |
| a) Digital Banking | 8893.7 | 8287.3 | 6880.7 | 7.3 | 29.3 |
| b) Other Retail Banking | 26892.9 | 26753.6 | 24618.3 | 0.5 | 9.2 |
| Other Banking Business | 1083.1 | 994.8 | 914.8 | 8.9 | 18.4 |
| Unallocated | 7.3 | 72.4 | – | -89.9 | – |
Source: Company website, EWL Research
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