Axis Bank reports Q3FY25 profit growth, announces $500m green loan

Axis Bank has demonstrated a strong performance in Q3FY25, underscoring its commitment to growth, sustainability, and digital innovation. The bank’s financial results reveal notable improvements in profitability and operational efficiency, driven by a strategic focus on green initiatives, inclusive banking, and digital transformation.

How did Axis Bank perform financially in Q3FY25?

The bank reported a 4% year-on-year (YoY) increase in net profit to ₹6,304 crores, supported by a 14% YoY growth in core operating profit, which reached ₹10,102 crores. Net interest income (NII) grew by 9% YoY to ₹13,606 crores, while the net interest margin (NIM) stabilized at 3.93%.

Fee income, a significant component of Axis Bank’s revenue, grew by 6% YoY to ₹5,455 crores, with retail fees accounting for 71% of the total. These figures reflect the bank’s steady financial management and focus on maintaining a strong balance sheet.

What are Axis Bank’s key initiatives for sustainability and inclusivity?

One of the standout achievements for the quarter was Axis Bank’s partnership with the International Finance Corporation (IFC) to launch a $500 million climate loan. This initiative aims to finance green and blue projects across India, furthering the bank’s commitment to sustainable banking and employment generation.

In the realm of inclusivity, Axis Bank introduced the ARISE Women’s Savings Account. Designed to address the financial needs of women, the account offers personalized investment opportunities and healthcare benefits. Additionally, the bank partnered with the Manipal Academy of BFSI to launch a women-only cohort under its Young Bankers Program, reaffirming its dedication to fostering a diverse workforce.

How is Axis Bank leading the digital banking space?

Axis Bank solidified its leadership in digital payments by maintaining the top position in the UPI payment service provider market, with a 30% market share. Its flagship mobile banking app, Axis Mobile, continues to rank among the highest-rated apps on both the Google Play Store and Apple App Store, boasting millions of monthly active users.

The bank also recorded a 32% YoY increase in UPI transaction value during the quarter. Further innovations, such as WhatsApp banking and a host of API-driven services, have enabled Axis Bank to strengthen its digital ecosystem, offering seamless customer experiences and boosting its competitive edge.

What are the highlights of Axis Bank’s loan and deposit growth?

Axis Bank’s total deposits grew by 9% YoY to ₹10,95,883 crores, with term deposits increasing by 14% YoY. On a Quarterly Average Balance (QAB) basis, total deposits rose by 13%. Retail loans, which account for 60% of the bank’s total advances, witnessed an 11% YoY growth to ₹6,05,825 crores.

Within the retail segment, rural loans grew by 17%, while small business banking loans surged by 20%, reflecting Axis Bank’s focus on financial inclusion in semi-urban and rural areas.

What expert insights have been shared by Axis Bank leadership?

Amitabh Chaudhry, Managing Director and CEO of Axis Bank, highlighted the institution’s focus on digital transformation, sustainability, and customer-centric services. He emphasized that the bank’s strategic initiatives align with India’s goal of becoming the third-largest global economy in the near future.

Chaudhry added that Axis Bank’s robust performance is a testament to its evolving capabilities, particularly in rural and digital banking, which continue to drive growth across multiple verticals.

What awards and recognitions did Axis Bank receive in Q3FY25?

Axis Bank earned several prestigious accolades during the quarter, including being named the “Best Indian Bank” at the Financial Times Bank of the Year Awards 2024. The bank also received honors for its digital innovation efforts at the IBSi Global FinTech Innovation Awards. These achievements underscore Axis Bank’s leadership in both traditional and digital banking domains.

How is Axis Bank positioned for future growth?

The bank’s capital adequacy ratio (CAR) stood at 17.01%, while its Common Equity Tier-1 (CET-1) ratio was at 14.61%, reflecting its strong capital position. Its liquidity coverage ratio (LCR) averaged 119% during the quarter, ensuring sufficient buffers to support growth initiatives.

With a focus on sustainable financing, digital expansion, and customer-centric innovations, Axis Bank is poised to remain a leading force in India’s financial sector. The launch of initiatives such as the climate loan and women-focused banking solutions underscores the bank’s ability to adapt to evolving market needs while driving economic and social impact.