Axis Financial institution’s This autumn Revenue Falls 1.63%; Declining Margins, Rising Prices Weigh On Efficiency | Economic system Information

New Delhi: Axis Financial institution on Thursday reported a 1.63 per cent year-on-year (YoY) drop in its consolidated web revenue for the March 2025 quarter (This autumn FY25) to Rs 7,489.71 crore from Rs 7,613.55 crore in the identical quarter final 12 months. Whereas the financial institution’s curiosity revenue rose 7.35 per cent to Rs 32,452.32 crore, its bills additionally went up by 7.05 per cent to Rs 28,512.99 crore. This rise in prices weighed on its general profitability.

One of many key areas of concern within the outcomes was the web curiosity margin (NIM), which dropped to three.97 per cent from 4.06 per cent a 12 months in the past — a decline of 9 foundation factors. This fall in margins got here regardless of a 6 per cent rise in web curiosity revenue (NII), which stood at Rs 13,811 crore for the quarter.

Together with the earnings, Axis Financial institution additionally introduced a fundraising plan value Rs 55,000 crore. Of this, Rs 35,000 crore might be raised via numerous debt devices comparable to long-term bonds and masala bonds.

The remaining Rs 20,000 crore might be raised by way of fairness or associated securities. The financial institution’s board additionally determined to extend the borrowing restrict to Rs 3 lakh crore. The board has really helpful a closing dividend of Re 1 per share for FY25, based on its inventory change submitting.

Axis Financial institution’s return on fairness (ROE) stood at 16.02 per cent, with a price-to-earnings ratio (P/E) of 14.17 and a price-to-book worth of two.27. The earnings per share (EPS) have been reported at Rs 85.19, as per the corporate’s filings. Although the inventory closed marginally larger at Rs 1,207.30 on the Bombay Inventory Alternate (BSE) on Thursday, buyers remained cautious after the quarterly efficiency.

“Whereas the inventory has gained 12.62 per cent to date this 12 months, the earnings miss and declining margins may weigh on future sentiment,” reviews stated. As of March 2025, promoters held an 8.18 per cent stake within the financial institution.