90% of slippages came from retail portfolio: Axis Bank’s CFO Puneet Sharma on Q3 results

Axis Bank

Axis Bank’s 90 percent fresh slippages came from retail segment in the third quarter of the current financial year, said chief financial officer, Puneet Sharma during the post-Q3 earnings conference call.

In the reporting quarter, fresh slippages of the bank increased by 46 percent on-year and 22.3 percent on-quarter, which was sharply higher than the previous quarter, when the lender reported 36.5 percent on-year rise and 7 percent fall in slippages.

According to the investor presentation of the bank, fresh slippages of the bank stood at Rs 5,432 crore in the October-December quarter, as comparted to Rs 3,715 crore in similar period last year.

“Seasonality from agri portfolio has impacted slippages in the current quarter. Also, unsecured played a role in retail segment for increase in slippages,” Sharma said during post earning conference call.

Sharma, during the call, said that of the total gross slippages, Rs 4,923 crore has came from retail segment, Rs 215 crore came from SME segment, and Rs 294 crore cam from wholesale segment.

Reported net slippages in the quarter adjusted for recoveries from written off pool was Rs 2,217 crore, of which retail was Rs 2,928 crore, CBG was Rs 50 crore and Wholesale was negative Rs 761 crore, bank said in a release.

Gross slippages of the bank increased to 2.13 percent in October-December quarter, from 1.78 percent in a quarter ago period, and 1.62 percent in a year ago period.

Net slippages of the bank increased to 1.4 percent in Q3FY25, from 0.96 percent in Q2FY25, and 0.5 percent in Q3FY24, according to the investor presentation of the bank.

Axis Bank's gross non-performing asset ratio, a key gauge of lenders' asset quality, was at 1.46% at December-end, compared with 1.44% three months earlier.

The lender today reported a 3.83 percent rise in its net profit to Rs 6,304 crore in the third quarter of the current financial year 2024-25. On Sequential basis, net profit of the lender declined 9 percent. In July-September quarter, net profit stood at Rs 6,917.57 crore.

Axis Bank earned interest income of Rs 30,954 crore for the fiscal third quarter of 2025, rising 11 percent from Rs 27,961 crore posted in the year-ago period. The lender paid Rs 17,348 crore as interest in the quarter under review, up 12 percent from Rs 15,429 crore in Oct-Dec quarter of the previous fiscal.