- 25 Apr 2025
- ICICIdirect Research
AXIS BANK REPORTED MIXED PERFORMANCE IN Q4FY25 WITH IMPROVED ASSET QUALITY
AXISBANK - 1194 Change: -9.40 (-0.78 %)News: Axis Bank reported mixed performance in Q4FY25 with improved asset quality but slower business growth. Advances grew 8% YoY (3% QoQ) to ₹10,40,811 crores, driven by retail loans at 7% YoY (3% QoQ), SME at 14% YoY (4% QoQ). Deposit accretion remained strong at 10% YoY (7% QoQ) to ₹11,72,952 crores, led by term deposits up 14% YoY (5% QoQ). Margins improved 4 bps QoQ to 3.94%, owing to focus on better yielding segments. Fee income growth remained healthy with continued control on opex. While credit cost was down sequentially at ~50 bps, remained higher on YoY basis, keeping earnings flat at ₹7,117 crore. GNPA improved 18 bps QoQ to 1.28%, led by elevated write-off, while NNPA improved to 0.33% (down 2 bps).
View: Deposit growth showed strong sequential traction, though loan growth remained below industry levels—sustainability of this momentum in Q1FY26 remains key. Credit card stress is stabilising, while personal loans may take a few more quarters to normalize. Margin impact from the recent rate cut is expected to be minimal, aided by a tightly matched asset-liability duration.
Impact: Neutral