Synopsis
Axis Bank has reported a 1.63% YoY decline in consolidated net profit to Rs 7,489.71 crore for Q4 FY25. Rising expenses and declining net interest margins are impacting profitability. The bank plans to raise Rs 55,000 crore through debt and equity to bolster its financial standing.Key Takeaways
- 1.63% YoY decline in net profit.
- Interest income rose by 7.35%.
- Expenses increased by 7.05%.
- Net interest margin fell to 3.97%.
- Plans to raise Rs 55,000 crore.
Mumbai, April 24 (NationPress) Axis Bank announced a 1.63 percent year-on-year (YoY) decline in its consolidated net profit for the March 2025 quarter (Q4 FY25), reporting Rs 7,489.71 crore compared to Rs 7,613.55 crore in the same quarter last year.
The bank's interest income experienced a 7.35 percent increase, reaching Rs 32,452.32 crore, while total expenses surged by 7.05 percent to Rs 28,512.99 crore, putting pressure on overall profitability.
A significant concern was the net interest margin (NIM), which fell to 3.97 percent from 4.06 percent a year earlier, marking a 9 basis points drop.
Despite a 6 percent increase in net interest income (NII), which totaled Rs 13,811 crore for the quarter, the decline in margins is noteworthy.
In conjunction with its earnings report, Axis Bank unveiled a fundraising initiative of Rs 55,000 crore. Of this, Rs 35,000 crore will be sourced through various debt instruments like long-term bonds and masala bonds.
The remaining Rs 20,000 crore will be acquired through equity or related securities. Additionally, the bank's board has resolved to raise the borrowing limit to Rs 3 lakh crore.
The board also proposed a final dividend of Re 1 per share for FY25, as per its filing with the stock exchange.
Axis Bank's return on equity (ROE) was reported at 16.02 percent, with a price-to-earnings ratio (P/E) of 14.17 and a price-to-book ratio of 2.27.
The earnings per share (EPS) were noted at Rs 85.19, according to the company's filings. Although the stock closed slightly higher at Rs 1,207.30 on the Bombay Stock Exchange (BSE) on Thursday, investor sentiment remained cautious following the quarterly results.
Reports indicate, While the stock has seen a 12.62 percent increase this year, the earnings disappointment and declining margins may have a negative impact on future sentiment.
As of March 2025, promoters held an 8.18 percent stake in the bank.
