Axis Bank Q4 profit flat as business growth stays muted

Trading income for the bank in Q4 was 83% lower on year at ₹173 crore

- Anshika Kayastha

Muted business growth as the bank "calibrated" its loan portfolio, coupled with lower treasury gains, weighed on Axis Bank's profitability in Q4 FY25, even as asset quality pressure remained owing to high retail slippages and write-offs.

The bank posted a marginal decline of 0.2% on year in its net profit to ₹7,117 crore. Sequentially, the private sector bank's profit after tax was 13% higher.

In the post-earnings call, chief financial officer Puneet Sharma said that the on-year differential in profits was due to the "very large trading gains" in the corresponding quarter of the previous year.

"If you look at the core operating profit, there's been an improvement, both year-on-year and quarter-on-quarter. Trading gains are episodic, very difficult to time in which quarter they flow through the P&L (profit and loss account). So, that's the gap you're seeing," he said.

Trading income for the bank in Q4 was 83% lower on year at ₹173 crore. This weighed on total other income, which grew a mere 0.2% to ₹6,780 crore for the quarter. Trading gains for FY25 were up 19% at ₹2,059 crore. Growth in the bank's core lending business was also muted in Q4, with net interest income growing 6% on year to ₹13,811 crore.