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Axis Bank 's Q4 numbers came in stronger than expected, but scratch the surface and it's not all smooth sailing.
Net profit held flat year-on-year at Rs 7,117 crore. That's solid, given the high base. Net interest income (NII) grew 5.5 per cent and gross NPAs fell to a healthy 1.28 per cent. So far, so good.
However, margins are slipping , loan growth is slowing and the bank's retail engine isn't firing like it used to.
Core metrics: Decent, not dazzling
| Metric | Q4 FY25 | YoY change |
|---|---|---|
| Net profit | Rs 7,117 crore | Flat |
| Net interest income | Rs 13,811 crore | +5.5 per cent |
| NIM | 3.97 per cent | Down from 4.06 per cent |
| Gross NPA | 1.28 per cent | Improved |
| Net NPA | 0.33 per cent | Improved |
| Dividend | Rs 1/share | Announced |
Asset quality has clearly improved. Slippages were low, provisions came down 37 per cent quarter-on-quarter and the bank's balance sheet looks clean. But earnings growth? That's another story.
What's dragging?
-
Loan growth was modest
at 8 per cent YoY, below the pace set by peers like
ICICI
and
Kotak
-
Retail loans
, which make up 60 per cent of the book, grew sluggishly
-
Home loan growth
was just 1 per cent YoY—a clear slowdown
- Margins dipped to 3.97 per cent, reflecting the higher cost of funds
In short, Axis is playing it safe. Good for stability, but less exciting if you're betting on aggressive growth.
Valuation check
Axis Bank trades at a P/B of 2, which puts it below the top private sector pack:
| Bank | P/B ratio |
|---|---|
| Axis Bank | 2 |
| HDFC Bank | 3 |
| ICICI Bank | 3 |
| Yes Bank | 1 |
Value Research Online Ratings
Value Research Stock Rating gives Axis Bank an overall rating of 5 stars. The company's specific scores are as follows:
-
Quality Score: 6/10
-
Growth Score: 8/10
-
Valuation Score: 6/10
- Momentum Score: 7/10
- Use our Stock Screener to see how Axis stacks up against other banks.
- Get a full snapshot of Axis Bank's financials, asset quality trends and historical returns with our Stock Card .
Final take
Axis Bank's share price has dropped more than 4 per cent in early trade today. The Q4 results highlight that while the bank is steady, it isn't exactly a standout performer.
Margins are under pressure, loan growth is tepid, but profits are stable, asset quality is improving and valuation is undemanding. It's not the market's favourite right now—but that might be exactly why it deserves a closer look.
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