On January 16, private lender Axis Bank said that its net profit for the third quarter of the current fiscal year 2024–2025 increased by 3.83 percent to Rs 6,304 crore. The lender's net profit decreased by 9% on a sequential basis. The net profit for the July–September quarter was Rs 6917.57 crore.
The third-largest private lender in India, Axis Bank, reported a 5.6 percent YoY increase in net profit for the third quarter of fiscal year 2024-25 (Q3FY25), powered by moderate loan growth, according to a Moneycontrol survey of six brokerages.
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For the fiscal third quarter of 2025, Axis Bank generated interest income of Rs 30,954 crore, an 11% increase over the Rs 27,961 crore reported during the same period last year. In the quarter under review, the lender paid interest of Rs 17,348 crore, which was 12% more than the Rs 15,429 crore paid in the Oct-Dec quarter of the previous fiscal year.
At Rs 2,156 crore, the lender's provisions and contingencies—money set aside for possible bad loans—more than doubled annually.Due to an increase in bad loans in areas like microfinance and the unsecured portfolio, Indian lenders have been compelled to increase their reserves for possible losses.
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At the end of December, Axis Bank's gross non-performing asset ratio, which is a crucial indicator of lenders' asset quality, was 1.46%, up from 1.44% three months prior.The difference between interest earned and paid, or net interest income, increased by 9% to Rs 13,606 crore.
In the three months ending December 31, Axis Bank's loan growth was 9% year over year, which was less than the 11% increase in the preceding quarter. Additionally, its total deposits increased by 9%.A crucial indicator of profitability, the net interest margin, decreased to 3.93% from 4.01% a year earlier and 3.99% in the prior quarter.
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