Axis Bank Q1 Results: Private sector lender meets Street estimates with 12% NII growth; asset quality deteriorates

Axis Bank Q1 FY25 Results: Axis Bank on Wednesday reported a standalone net profit of Rs 6,034.6 crore for the April-June period, up 4.1 per cent in comparison to the corresponding period a year ago. Its net interest income - or the difference between the interest earned and the interest paid - grew 12.4 per cent to Rs 13,448.2 crore, according to a regulatory filing. 

According to Zee Business research, the lender was estimated to log a June-quarter net profit of Rs 6,310 crore over NII of Rs 13,257 crore. 

Its net interest margin - a key measure of profitability for financial institutions - came in at 4.05 per cent for the June quarter as against 4.06 per cent for the previous three months.

Zee Business analysts had estimated the lender's NIM for the fiscal first quarter at 3.7-4 per cent.   

The bank's asset quality deteriorated, as reflected in an increase of 11 basis points (bps) in its gross non-performing assets (GNPAs) as a percentage of total loans compared with the March quarter.

Similarly, its net non-performing assets (NNPAs) as a percentage of total loans increased by 3 basis points sequentially to 0.34 per cent.

The lender logged a 97 per cent year-on-year jump in provisions to Rs 2,039.3 crore for the first quarter of the current financial year, while gross slippages rose 20.1 per cent to Rs 4,793 crore.

Axis Bank registered 14 per cent loan growth and 13 per cent deposit growth. Zee Business analysts had pegged loan growth and deposit growth at the lender at 15-16 per cent and 16-17 per cent, respectively.

Catch all the latest stock market updates here. For all other news related to business, market, tech and auto, visit Zeebiz.com.