Axis Bank Q1 results: April-June net profit rises to Rs 6,035 crore, beats estimates

Axis Bank on July 24 reported a net profit of Rs 6,035 crore for Q1 FY25, up from Rs 3,452 crore in the corresponding quarter previous year. This beat street expectations. An average estimate of 8 brokerages had expected a net profit of Rs 5,797 crore. On a sequential basis, the profit of the bank dropped by 15 percent from Rs 7,130 crore.

The bank's asset quality worsened sequentially with gross non-performing assets up 11 basis points (bps) at 1.54 percent and net non-performing assets 3 bps up at 0.34 percent. On a year on year (YoY) basis, the bank's GNPA and NNPA improved by 42 bps and 7 bps respectively. Here, Puneet Sharma, Chief Financial Officer, in a post results press call, said that there was some pressure on asset quality due to seasonality on the retail agri business in the first quarter.

Axis Bank's net interest income (NII) for the April-June quarter rose to Rs 13,448 crore from Rs 11,959 crore in the same quarter a year ago. The brokerage estimates had expected a NII of Rs 13,361 crore.  Net interest margin (NIM) for Q1FY25 stood at 4.05 percent versus 4.10 percent last year.

The bank completed its integration with Citi in July 2024. Here, Amitabh Chaudhry, MD&CEO, Axis Bank said: ‘The last quarter was crucial in terms of getting all the teams to work together for the last leg of Citi integration. I am delighted that the integration is done and it was largely seamless given the size and scale of the transition."