Axis Bank Faces Profit Dip Amidst Rising Bad Loans

Axis Bank, on Thursday, reported a notable 4% decline in net profit, charting Rs 5,806 crore for the first quarter ending June 30, 2025. This downtrend was attributed to a slight uptick in bad loans, as noted by the banking institution.

Comparatively, the private sector bank previously recorded a standalone profit of Rs 6,035 crore in the matching quarter of the preceding fiscal year. Despite facing challenges, total income witnessed a growth, climbing to Rs 38,322 crore for Q1 2025-26 from Rs 35,844 crore in the equivalent period of FY25.

Interest accrual increased to Rs 31,064 crore from Rs 30,061 crore, while operating profit rose to Rs 11,515 crore, overtaking the previous year's Rs 10,106 crore. However, asset quality saw a setback with gross NPAs inching up to 1.57% and net NPAs rising to 0.45%. Provisions and contingencies nearly doubled to Rs 3,948 crore, despite a favorable climb in the capital adequacy ratio to 16.85%.

(With inputs from agencies.)