Axis Bank Faces Financial Challenges Amidst Mixed Market Performance and Rising NPAs

Axis Bank has recently undergone a financial trend adjustment, reflecting challenges in its performance metrics for the quarter ending June 2025. The bank reported an operating cash flow of Rs 49,412.20 crore, marking a strong point in its financials. Additionally, the dividend per share reached Rs 1.00, indicating a commitment to shareholder returns.
However, the bank is facing significant hurdles. The gross non-performing assets (NPA) ratio has risen to 1.57%, which is a concern for asset quality. Furthermore, the profit before tax, excluding other income, has dropped to Rs 309.44 crore, highlighting operational difficulties. The non-operating income constitutes a staggering 95.91% of the profit before tax, raising questions about the sustainability of earnings. The earnings per share (EPS) also fell to Rs 18.72, and the net NPA increased to 0.45%.

In terms of market performance, Axis Bank's stock has shown mixed results compared to the Sensex. Over the past year, the bank's stock has declined by 11.05%, while the Sensex has gained 1.91%. However, on a longer-term basis, Axis Bank has outperformed the Sensex over three, five, and ten-year periods, with returns of 75.07%, 167.65%, and 92.57%, respectively. This juxtaposition underscores the bank's fluctuating performance amidst broader market trends.