On April 24, 2025, Axis Bank Limited, India’s fourth largest private lender, reported its financial results for the fourth quarter ending March 31, 2025. The bank's standalone net profit showed a slight year-on-year decline of 0.20%, amounting to ₹7,117.50 crore, compared to ₹7,129.67 crore in the same quarter of the previous fiscal year. Despite this marginal drop, the bank's total interest earned increased by 6.90% year-on-year, reaching ₹31,242.51 crore, up from ₹29,224.54 crore.
Axis Bank's net interest income (NII) rose by 6% to ₹13,811 crore, while its net interest margin (NIM) for the quarter stood at 3.97%, down from 4.06% in the previous year. The operating profit also saw a modest growth of 2%, reaching ₹10,752 crore. However, operating costs increased by 6% during Q4FY25.
The bank's provisions and contingencies for the quarter were reported at ₹1,359 crore, with specific loan loss provisions at ₹1,369 crore. Cumulatively, Axis Bank had provisions totaling ₹11,957 crore by the end of Q4FY25, which provided a standard asset coverage of 1.15% as of March 31, 2025. The overall provision coverage ratio stood at 157% of gross non-performing assets (GNPA).
As of March 31, 2025, Axis Bank's balance sheet grew by 9% year-on-year, totaling ₹16,09,930 crore. Total deposits increased by 7% quarter-on-quarter and 10% year-on-year. The share of CASA (current account savings account) deposits surged to 41% from 39% at the end of the previous quarter.
The bank's advances also grew, rising 3% quarter-on-quarter and 8% year-on-year to ₹10,40,811 crore. Retail loans, accounting for 60% of the bank's net advances, increased by 3% quarter-on-quarter and 7% year-on-year to ₹6,22,897 crore.
In terms of asset quality, Axis Bank reported a gross non-performing asset (NPA) ratio of 1.28% and a net NPA ratio of 0.33% as of March 31, 2025, an improvement from 1.46% and 0.35% respectively at the end of the previous quarter. Gross slippages in the quarter amounted to ₹4,805 crore, down from ₹5,432 crore in Q3FY25 and ₹3,471 crore in Q4FY24.
Axis Bank’s provision coverage as a percentage of gross NPAs stood at 75% as of March 31, 2025, a slight decline from 76% as of December 31, 2024. The bank wrote off NPAs totaling ₹3,375 crore during Q4FY25.
The Board of Directors has recommended a dividend of ₹1 per equity share of face value ₹2 for the financial year 2025, subject to shareholder approval at the upcoming annual general meeting.
Amitabh Chaudhry, Axis Bank's Managing Director and CEO, stated, "The Bank prioritized profitability over growth, considering the uncertain macros and tight liquidity environment dominating most of FY25, while continuing to meaningfully invest in making the franchise more sustainable. As we enter FY26, we believe the operating environment is improving, which should help us drive both growth and profitability." Chaudhry highlighted that the bank’s focus on profitability and sustainable growth has positioned it well for the future.
In addition to Axis Bank, other major companies have also announced their Q4 results. Tech Mahindra reported a net profit of ₹1,166.7 crore for the January-March quarter, a significant increase of 76.5% from ₹661 crore in the same quarter last year. The company’s revenue from operations rose by 3.98% to ₹13,384 crore. Tech Mahindra's board also recommended a final dividend of ₹30 per equity share, bringing the total dividend to ₹45 per share for FY25.
Meanwhile, Cyient reported a net profit of ₹186.4 crore for Q4FY25, down from ₹196.9 crore in the same quarter last year. Revenue increased slightly to ₹1,909.2 crore. The company’s EBIT grew by 5.2%, reflecting its focus on operational efficiency.
SBI Life Insurance Company also released its quarterly results, showing a net profit of ₹813.51 crore, marginally higher than ₹810.80 crore recorded in the corresponding quarter of FY24. The company’s net premium income fell by nearly 5% year-on-year to ₹23,860 crore, indicating challenges in the insurance sector.
Adani Energy Solutions reported a robust performance, with a net profit of ₹647.15 crore for Q4FY25, marking a 79% increase over the previous year. The company’s revenue surged to ₹6,374.58 crore, reflecting strong demand in the energy sector.
Overall, the Q4 results season has presented a mixed bag for various sectors, with some companies reporting solid growth while others faced challenges. Analysts indicate that the broader consumption demand may take a couple of quarters to stabilize, but improvements in capital expenditure and government measures could provide a boost to the economy moving forward.
As the financial year wraps up, companies like Axis Bank, Tech Mahindra, and others are gearing up for another year of challenges and opportunities, with a keen eye on market dynamics and consumer behavior.
