Axis Bank Shares See Decline Of 7% As Indian Lender Reports Over 3% Drop In Q1 Results

Axis Bank Q1 Results: The shares of Axis Bank on Friday witnessed a decline after the company reported a 3 per cent dip in June quarter consolidated net profit. As of July 18, 2025, its current share price stands at Rs 1,073.95 after the stock dropped 7.40 per cent on the BSE in early morning trade. The stock emerged as the biggest laggard among the Sensex and Nifty firms today. At the NSE, it tumbled 6.36 per cent to Rs 1,086 apiece.

The major drop in stock prices came a day after Axis Bank shared its financial results for the April to June quarter 2025 (Q1 FY26) and reported a 3 per cent dip in its June quarter consolidated net profit at Rs 6,243.72 crore. On a standalone basis, its net profit declined to Rs 5,806 crore from the year-ago period's Rs 6,034 crore, but was down sharply when compared with the quarter-ago period's Rs 7,117 crore.

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Axis Bank Q1 Results

As per a press release issued by Axis Bank, the net interest income (NII) inched up 1 per cent to Rs 13,560 crore on the back of a sharp decline in net interest margin to 3.80 per cent from the year-ago period's 4.05 per cent. In Q1, Axis Bank's retail credit grew by just 6 per cent, rural by 5 per cent, corporate loans by 9 per cent and ones to small businesses by 16 per cent.

The bank spent significantly more to run its operations as operating costs grew. Consequently, the bank's profit margins on loans became smaller. Its Gross Non-Performing Assets (NPA) also increased slightly, from 1.28 per cent to 1.57 per cent. Similarly, its Net NPA also increased from 0.33 per cent to 0.45 per cent, making it less likely that the bank will recover all of its loans.

The absolute gross NPAs also went up, making it more difficult for the bank to sustain itself in a turbulent economic environment, where failing US-India trade talks and a stronger dollar against the rupee are creating more challenges for the economy.

Currently, the bank is witnessing more deposits, with the total deposits growing by 9% to Rs 11.61 lakh crore. A good portion of the deposits are coming from current and savings accounts, which are cheaper for the bank. The bank is giving out more loans as its advances are growing.

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Now, Axis Bank is also noticing a minor increase in its retail loan portfolios as the number of individual customers is continuously increasing. As most individual loans have collateral, it makes it less risky for the bank to secure retail loans.

There are other categories, too, where the bank is noticing an increase in lending, such as small business, realty, and even personal loans. The bank's total loans grew by 8% to Rs 10.59 lakh crore. A significant portion of these were individual loans, such as home loans.