Are Axis Bank latest results good or bad?

Axis Bank has reported its financial results for the quarter ending March 2025, highlighting several operational trends. The bank achieved a record Net Interest Income of Rs 13,810.54 crore, reflecting consistent growth over the last five quarters. Additionally, the interest earned reached Rs 31,242.51 crore, marking the highest level in the same period, which suggests a positive near-term sales trend.
The Gross Non-Performing Assets (NPA) ratio improved to 1.28%, the lowest in five quarters, indicating a reduction in stressed loans. Profit Before Tax (PBT) also reached Rs 2,613.50 crore, the highest in the last five quarters, suggesting a favorable trend in profitability. Furthermore, the Capital Adequacy Ratio (CAR) stands at 17.07%, showing an enhancement in the bank's capital base relative to its risk assets.

However, there are challenges to consider. Non-Operating Income accounted for 72.18% of PBT, which raises concerns regarding the sustainability of income sources. While Non-Operating Income reached a five-quarter high of Rs 6,779.52 crore, its sustainability as a business model may be questionable moving forward.

In terms of year-over-year performance, the growth in Interest Earned for the quarter ended March 2025 was 6.91%, a decrease from the previous year's growth of 21.92%. Similarly, Net Profit saw a slight decline of 0.17% compared to a growth of 52.97% in the prior year.

Overall, Axis Bank has seen an adjustment in its evaluation, reflecting the mixed operational trends observed in its latest financial results.