Axis Bank has announced impressive financial results for the second quarter of FY25, showcasing a robust net profit of ₹6,918 crore, marking an 18% year-on-year (YoY) increase. The bank attributed this growth to consistent advancements in both deposits and advances, with the operating profit soaring by 24% YoY.
In terms of revenue, the Net Interest Income (NII) grew by 9%, reaching ₹12,234 crore, while the Net Interest Margin (NIM) held steady at 3.99%. These figures reflect the bank’s effective interest rate management amid a competitive landscape.
The bank also witnessed a notable rise in fee income, which increased by 11% YoY and 6% quarter-on-quarter (QoQ). Particularly impressive was the growth in retail fees, which constituted a significant share of this increase, rising by 11% YoY and 5% QoQ. Notably, granular fees accounted for 92% of total fees, indicating a diverse revenue stream.
Axis Bank’s deposits grew by 14% YoY, with term deposits showing a substantial increase of 21% YoY. However, the growth in Current Account Savings Account (CASA) deposits was more modest at 4% YoY.
On the advances front, the bank reported a net advances increase of 11% YoY and 2% QoQ, with total advances (gross of IBPC) climbing 12% YoY and 2% QoQ. The retail loans segment saw a 15% YoY increase, while SME loans grew by 16% YoY. Corporate loans also experienced a steady rise, up by 6% YoY.
Axis Bank’s Capital Adequacy Ratio (CAR) stood at 16.61%, supported by a Common Equity Tier 1 (CET-1) ratio of 14.12%. The net accretion to CET-1 was 38 basis points in the first half of FY25 and 6 basis points in Q2FY25.
Additionally, the bank reported an improvement in asset quality, with the Gross Non-Performing Assets (GNPA) ratio declining by 29 basis points YoY to 1.44%, while the Net Non-Performing Assets (NNPA) ratio decreased slightly to 0.34%.
In a notable achievement, Axis Bank has secured the top position in the UPI Payer Payment Service Provider (PSP) space, capturing approximately 31% of the market share.
Amitabh Chaudhry, MD and CEO of Axis Bank, emphasized the bank’s balanced approach, stating, “This quarter, we balanced digital prowess and advancement with physical expansion and proximity to our customers.”
The bank has been actively expanding its footprint, opening 150 new branches across both urban and rural areas over the past three months. Chaudhry also highlighted the establishment of a new Corporate Office in Kolkata, aimed at enhancing regional operations. Furthermore, Axis Bank expanded its private banking service, “Burgundy Private,” to 15 new cities, now reaching 42 locations across India to cater to the evolving needs of clients in Tier 2 markets.
Axis Bank’s strong performance in Q2 FY25 reflects its strategic focus on growth, effective risk management, and commitment to enhancing customer experience. As the bank continues to expand its services and improve its asset quality, it positions itself well for sustained growth in the competitive banking landscape.
ALSO READ: Nestle India Q2 Results: Net Profit Decreases Marginally
Elon Musk was not shy about his satire 'Save the Bureaucracy' bill, mocking legislative inefficiency.…
A new report has found that more than 3,100 Native American children died in U.S.…
n Nikhil Kamath Podcast, KM Birla stated, “Rs 1 crore is just not enough to…
A large police presence was reported at Monroeville Mall on Sunday afternoon after social media…
Jacqueline Guajardo, 28, was taken into custody after an Amber Alert was issued for two…
A woman was asleep on an NYC subway train in Coney Island-Stillwell Avenue station when…