Axis Bank Q4 Results: Profit Flat At Rs 7,117 Cr; Record CASA & Deposit Growth Fuel ROE Surge

At its meeting on Thursday, April 24, 2025, in Mumbai, the Board of Directors of Axis Bank Limited approved the financial results for the quarter and year ending March 31, 2025. While the bank's operating profit for the quarter increased 2% YoY to Rs 10,752 crores, and core operating profit up 5% QoQ and 11% YoY to Rs 10,575 crores, the bank's net profit increased 13% QoQ and stayed flat YoY at Rs 7,117 crores in Q4FY25.

The bank's Net Interest Margin (NIM) for Q4FY25 was 3.97%, while its Net Interest Income (NII) increased 6% YoY to Rs 13,811 crores.

While fee income climbed 16% QOQ and 12% YOY to Rs 6,338 crores for Q4FY25, the bank's overall non-interest income jumped 14% QOQ and remained relatively stable YoY to Rs 6,780 crores.Axis Bank said that its Q4FY25 provisions and contingencies were Rs 1,359 crores, while as of March 31, 2025, the bank's provision coverage ratio was 157% of GNPA. For the quarter that ended on March 31, 2025, the credit cost was 0.50%.

As of March 31, 2025, the bank's balance sheet was at Rs 16,09,930 crores, a 9% YoY growth. On a month-end basis, total deposits climbed by 7% QOQ and 10% YOY. Current account deposits improved by 16% | 6%, savings account deposits by 8% | 3%, and term deposits by 5% | 14% on a QOQ | YOY basis. At the conclusion of Q3FY25, the percentage of CASA deposits in total deposits increased from 39% to 41%. Total deposits increased by 2% QOQ and 9% YOY on a QAB basis. Savings account deposits increased by 1% YOY (flat QOQ), current account deposits increased by 3% | 6%, and term deposits increased by 2% | 14% on a QOQ | YOY basis.

As of March 31, 2025, the bank's advances had increased 3% QOQ and 8% YOY to Rs 10,40,811 crores. Retail loans, which made up 60% of the Bank's net advances, climbed 3% QOQ and 7% YOY to Rs 6,22,897 crores.

The bank's reported Gross Non-Performing Asset (NPA) and Net Non-Performing Asset (NPA) levels as of March 31, 2025, were 1.28% and 0.33%, respectively, compared to 1.46% and 0.35% as of December 31, 2024. For the quarter, Rs 935 crores were recovered from written-off accounts. After accounting for recovery from the written-off pool, reported net slippages for the quarter totaled Rs 1,079 crores, of which Rs 2,297 crores came from retail, Rs 5 crores from CBG, and Rs 1,223 crores from wholesale. In comparison to Q3FY25's gross slippages of Rs 5,432 crores and Q4FY24's gross slippages of Rs 3,471 crores, the quarter's gross slippages came to Rs 4,805 crores. During the quarter, Rs 2,791 crores were recovered and upgraded from non-performing assets.

The bank's provision coverage as a percentage of gross non-performing assets (NPAs) was 75% as of March 31, 2025, compared to 76% and 79% as of December 31, 2024, respectively. The bank's wrote off NPAs aggregating Rs 3,375 crores in Q4FY25.

"The Board of Directors has recommended dividend of Rs 1 per equity share of face value of Rs 2 per equity share for the year ended 31st March 2025. This would be subject to approval by the shareholders at the next annual general meeting," said Axis Bank in a stock exchange filing.

Amitabh Chaudhry, MD&CEO, Axis Bank said, "The Bank prioritised profitability over growth, considering the uncertain macros and tight liquidity environment dominating most of FY25, while continuing to meaningfully invest in making the franchise more sustainable. As we enter FY26, we believe the operating environment is improving, which should help us drive both growth and profitability."

ROE was 16.52% and ROA was 1.74% for standalone basis for Axis Bank in FY25. From Rs 49,894 crores in FY24 to Rs 54,348 crores in FY25, net interest income increased 9% YoY. At Rs 22,504 crores, fee income surged 11% YoY. From Rs 37,123 crores in FY24 to Rs 42,105 crores in FY25, operating profit went up by 13%. From Rs 35,393 crores in FY24 to Rs 39,916 crores in FY25, the core operating profit jumped by 13%. For FY25, the total amount of provisions was Rs 7,758 crores. From Rs 24,861 crores in FY24 to Rs 26,373 crores in FY25, the net profit shot up by 6%.

In comparison to 5,377 domestic branches and extension counters and 182 Business Correspondent Banking Outlets (BCBOs) spread across 2,963 centers as of March 31, 2024, the bank has added 170 branches during the quarter under review, increasing its total distribution network to 5,876 domestic branches and extension counters and 234 BCBOs spread across 3,194 centers as of March 31, 2025. The bank operated 13,941 ATMs and cash recyclers nationwide as of March 31, 2025. As of March 31, 2025, the bank's Axis Virtual Center has eight physical locations and more than 1,700 Virtual Relationship Managers.