Axis Bank Q4 FY25 Profit at ₹7,117.5 Cr; Asset Quality Improves, Fee Income Up 12% YoY
Axis Bank was among several prominent companies releasing their fiscal fourth quarter earnings reports on Thursday, 24 April 2025. The bank announced its results for the January to March period, reporting a net profit of ₹7,117.50 crore for Q4 FY25. The share price of Axis Bank closed at ₹1208.50, with a slight increase of 0.13%.
Profit and Core Income
The reported profit of ₹7,117.50 crore for the fourth quarter of fiscal year 2025 represents a marginal decline compared to the ₹7,129.67 crore recorded during the corresponding quarter of FY24, reflecting a slight decline of 0.2% year-on-year. Net interest income (NII), a key measure of a bank's core lending performance, stood at ₹13,811 crore in Q4 FY25, , improving by 4 basis points sequentially. This figure reflects a 6% rise compared to the ₹13,089 crore reported in the same quarter last year, indicating strong core performance. Fee income also saw significant growth, increasing by 16% quarter-on-quarter and 12% year-on-year to ₹6,338 crore. Retail fees, a key granular component, grew 22% sequentially. The bank also saw a significant drop in provisions during the quarter, which fell to ₹1,359 crore from ₹2,156 crore sequentially.
Asset Quality Management
A notable aspect of Axis Bank's Q4 results was the improvement in asset quality. The bank's gross non-performing assets (NPA) reduced to ₹14,490 crore in Q4 FY25 from ₹15,850 crore in the preceding quarter. Concurrently, net NPA also saw a decline, falling to ₹3,685 crore from ₹3,775 crore quarter-on-quarter. These reductions translated into improved NPA ratios. The gross NPA ratio improved to 1.28% from 1.46%, while the net NPA ratio decreased to 0.33% from 0.35. The sources highlighted that this reduction in NPAs points towards strong asset quality management.
Market Reaction
Ahead of the results announcement, shares of Axis Bank were trading slightly down, specifically down 0.083% at ₹1,205.70 apiece in afternoon trade on the day of the result. But, the share closed at ₹1208.50, with a slight increase of 0.13%.
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