Axis Bank Q3 Results: Axis Bank's standalone net profit climbed to ₹6,304 crore in Q3FY25, representing a 3.8% YoY rise. While gross slippages hit ₹5,432 crore, the bank's net interest income increased by 8.6%. Additionally, operating profit increased by 15% annually.
Axis Bank Q3 Results: On Thursday, the private lender Axis Bank revealed a 3.8% increase in standalone net profit to ₹6,304 crore in December 2024, up from ₹6,071 crore in the same quarter of the prior fiscal year. Conversely, PAT experienced a 9% sequential decline in comparison to Q2FY25's ₹6,918 crore.Axis Bank's Net Interest Margin (NIM) for Q3FY25 was 3.93%, while its Net Interest Income (NII) increased 8.6% year over year to ₹13,606 crore.
The private lender stated in its exchange filing that the bank's operating profit for the quarter reached ₹10,534 crores, a 15% year-over-year gain. At ₹10,102 crores, the core operating profit increased by 14% on an annual basis.
Operating expense growth also decreased, falling from 9% year over year in Q2FY25 to 1% year over year in Q3FY25. In Q3FY25, the net profit increased by 4% year over year to ₹6,304 crores.
Stable asset quality
According to the private lender, the Bank's stated Gross Non-Performing Asset (NPA) and Net Non-Performing Asset (NPA) levels as of December 31, 2024, were 1.46% and 0.35%, respectively, up from 1.44% and 0.34% on September 30, 2024.
The gross slippages for the quarter was ₹5,432 crores, which is less than the gross slippages for Q2FY25 (₹4,443 crores) and Q3FY24 (₹3,715 crores). ₹1,915 crores were recovered and upgraded from non-performing assets during the quarter that concluded in December. The bank wrote off ₹3,133 crores in non-performing assets during the quarter (Q3FY25).
Adequacy of Capital
As of December 31, 2024, the Capital Adequacy Ratio (CAR) was 17.01% and the CET1 ratio was 14.61%.
Network
Since the addition of 130 branches during the quarter, the Bank's distribution network has grown from 5,252 domestic branches and extension counters and 156 Business Correspondent Banking Outlets (BCBOs) spread across 2,910 centers as of December 31, 2023 to 5,706 domestic branches and extension counters and 202 BCBOs spread across 3,122 centers as of December 31, 2024.
Management remarks
With hundreds of new bank branches, we strengthened our businesses, capabilities, and presence throughout the nation, capping up 2024 on a positive note. Our main motivators have been digital and rural, as well as inclusivity and sustainability.
We also reworked our brand credo this quarter, highlighting our customer-first strategy with our new campaign, Har Raah Dil Se Open. It serves as a reminder for us to remain dedicated to our clients' changing demands and goals. Amitabh Chaudhry, MD&CEO, stated, "The Axis team is optimistic and excited to unlock the opportunities of 2025, supporting the ambitions of a resurgent India as it looks forward to becoming the third largest global economy in the coming years."
Today's share price of Axis Bank
The price of Axis Bank's shares on the BSE finished Thursday at ₹1,040.20, up 1.25%. Axis Bank is currently trading at about 1044, heading towards a crucial support zone between ₹1,000–₹1,010, which has been a strong demand area, according to Riyank Arora, Technical Analyst at Mehta Equities Ltd. A period of consolidation is indicated by the RSI's improvement to 29. The stock might climb toward ₹1,100 and ₹1,120 if it makes a push move above ₹1,054. A closing below ₹1,000 would alter the forecast and could result in more declines.
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