3rd Largest Private Bank in India Announces Dividend and Financial Results for the Quarter & Year Ended March 31, 2025
The company has a market cap of Rs 3.74 lakh crore and the stock is up by 30 per cent from its 52-week low of Rs 934 per share.
Axis Bank has announced its financial results for the quarter and year ended March 31, 2025. The bank demonstrated strong profitability, with Q4FY25 Consolidated Return on Assets (ROA) reaching 1.88 per cent and Return on Equity (ROE) at 17.11 per cent. Profit After Tax (PAT) for the quarter was Rs 7,117 crores, a 13 per cent increase QOQ, while FY25 PAT reached Rs 26,373 crores, up 6 per cent YOY. Net Interest Margin (NIM) for Q4FY25 improved to 3.97 per cent, a 4 bps increase QOQ and FY25 NIM stood at 3.98 per cent. Fee income also saw healthy growth, increasing by 12 per cent YOY and 16 per cent QOQ, with retail fee growth at 22 per cent QOQ and granular fees comprising 94 per cent of total fees. The bank's core operating profit grew by 5 per cent QOQ.
The bank's balance sheet showed robust growth. CASA deposits grew by 10 per cent QOQ, and total deposits increased by 7 per cent QOQ and 10 per cent YOY. On a YOY basis, total deposits grew by 10 per cent and 9 per cent. Term deposits grew by 14 per cent, with CA growing at 6 per cent and SA at 3 per cent. Net advances rose by 8 per cent YOY and 3 per cent QOQ. Retail loans grew 7 per cent YOY and 3 per cent QOQ, SME loans grew 14 per cent YOY and 4 per cent QOQ, and Corporate loans grew 8 per cent YOY. The bank maintains a strong capital position, with an overall Capital Adequacy Ratio (CAR) of 17.07 per cent with a CET 1 ratio of 14.67 per cent, net accretion to CET-1 of 93 bps in FY25, 6 bps in Q4FY25.
Axis Bank continues to hold a significant market share in key segments, including Merchant Acquiring (approximately 19 per cent) and UPI Payer PSP (around 32 per cent). The bank's branch network has expanded, now comprising 5,876 domestic branches.
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The bank has also demonstrated good asset quality. Gross Non-Performing Assets (GNPA) stood at 1.28 per cent, and Net Non-Performing Assets (NNPA) were 0.33 per cent. The Provision Coverage Ratio (PCR) was 75 per cent. The bank has also made significant recoveries from written-off accounts, amounting to Rs 935 crores in Q4FY25.
Established in December 1993, Axis Bank Ltd. stands as a prominent private sector bank in India, boasting the third-largest branch network among its private peers. Beyond its significant domestic presence, Axis Bank has cultivated an international footprint with branches in DIFC (Dubai) and Singapore, complemented by representative offices in Abu Dhabi, Sharjah, Dhaka, and Dubai, as well as an offshore banking unit situated in GIFT City. Notably, the bank also holds a strong position in the credit card market, ranking as the fourth-largest issuer in the country.
The company has a market cap of Rs 3.74 lakh crore and the stock is up by 30 per cent from its 52-week low of Rs 934 per share. Investors should keep an eye on this Large-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.