Axis Bank (AXISBANK) Q2 24/25 earnings summary

Executive summary

• Operating profit rose 24% YoY and 6% QoQ, with consolidated ROA at 1.92% and ROE at 18.08%, driven by steady growth in deposits and advances.

• Deposits grew 14% YoY, new customer acquisitions up 24% YoY, and focus business segments grew 20% YoY.

• Asset quality remained stable; GNPA at 1.44%, NNPA at 0.34%, and provision coverage ratio at 77%.

• Subsidiaries delivered strong results: Axis Finance PAT up 24% YoY, Axis AMC PAT up 29% YoY, Axis Securities PAT up 139% YoY.

• Achieved No. 1 position in UPI Payer PSP with 31% market share and expanded digital initiatives.

Financial highlights

• H1 FY25: Operating profit INR 20,819 crore (up 19% YoY), PAT INR 12,952 crore (up 11% YoY), cost-to-income at 47.21% (down 207 bps YoY).

• Q2 FY25: NII INR 13,483 crore (up 9% YoY), fees INR 5,508 crore (up 11% YoY, 6% QoQ), operating expenses INR 9,493 crore (up 9% YoY, 4% QoQ).

• PAT for Q2FY25 was ₹6,918 crore, up 18% YoY; diluted EPS (annualized) at ₹88.20.

• Gross NPA at 1.44% (down 29 bps YoY, 10 bps QoQ); Net NPA at 0.34%.

• CET1 including H1 profits at 16.61%.

Outlook and guidance

• Advances expected to grow 300–400 bps faster than industry in the medium to long term.

• Deposit growth remains a key constraint for advances in the short to medium term.

• Focus on growing retail, SME, and rural advances, leveraging digital and technology investments.

• Continued focus on risk-adjusted returns and calibrated growth in unsecured retail segments.

• Adoption of RBI's revised investment portfolio framework led to a one-time net worth increase and changes in investment reserve accounting.