Axis Bank, one of India’s top private lenders based in Maharashtra, is expected to report a 5% year-on-year drop in net profit for the January–March 2025 quarter, mainly due to weak loan growth and margin pressure. Despite this, its stock has shown impressive long-term gains, rising 180% over five years.
Axis Bank, the third-largest private sector bank in India headquartered in Maharashtra, is projected to post a 5% year-on-year decline in its net profit for the fourth quarter ending March 31, 2025. The lender will report its financial results on April 24, alongside full-year earnings for FY25.
According to estimates, Axis Bank’s Q4 net profit may fall to ₹6,773 crore from ₹7,129.7 crore a year ago. Analysts attribute this dip to weak loan growth and falling margins. Net interest income is expected to rise modestly by 6.2% YoY to ₹13,900 crore. However, net interest margins (NIMs) are likely to shrink by 14 basis points to 3.9% due to the cost of deposits increasing faster than returns from loans.
The bank’s advances are projected to grow 9.27% YoY to ₹10.6 lakh crore, while deposits could rise by 8.4% to ₹11.6 lakh crore. Asset quality is expected to remain steady, with gross and net non-performing assets holding at 1.5% and 0.4% respectively.
Despite Q4 challenges, Axis Bank’s stock has delivered strong returns. Over the last month, the share price surged over 13%, with a 27% gain over three months. Year-to-date, the stock is up nearly 14%, and over five years, it has gained around 180%.
Market watchers are keenly looking forward to the management’s commentary on loan and deposit growth outlook, operational performance, and credit cost trends.
At 2:40 PM on April 23, Axis Bank shares were trading at ₹1,209.55 on the BSE, down 0.62% from the previous close.
