Axis Bank Ltd.Strong Recovery with Stabilizing Asset Quality

Axis Bank delivered a robust quarter with profit after tax surging twenty-eight percent quarter-on-quarter to six thousand four hundred ninety crores, driving return on equity up to fourteen point one five percent.

Net interest income grew five percent year-on-year to fourteen thousand two hundred eighty-seven crores despite net interest margin compression to three point six four percent due to rate cuts. Management reaffirmed its through-cycle three point eight percent margin guidance as rate cycle agnostic. Deposit growth outpaced advances at fifteen percent year-on-year versus fourteen percent, with CASA growing fourteen percent annually.

Asset quality showed meaningful stabilization with gross non-performing assets improving to one point four zero percent and net credit costs declining seventeen basis points year-on-year to zero point six three percent. Retail unsecured portfolios stabilized with all early delinquency indicators within guardrails. The bank crossed six thousand branches, adding one hundred thirty-four in the quarter. Capital position remains robust at fourteen point five zero percent CET-1 with no equity requirement.

Fee income grew twelve percent year-on-year with ninety-two percent granularity, while retail disbursements surged twenty percent annually across segments.