India · Delayed Price · Currency is INR Axis Bank Earnings Call Transcripts
Fiscal Year 2027
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Advances and deposits grew strongly YoY, with improved asset quality and robust profitability. NIMs are at a cycle low but management maintains a 3.8% structural target, expecting retail growth and margin recalibration. Capital and digital investments remain strong.
Fiscal Year 2026
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Strong year-on-year growth in advances and deposits, improved asset quality, and robust profitability were achieved, supported by disciplined execution and technology investments. Additional provisions were made for macro risks, and the bank maintains a positive outlook with continued focus on NIM and balanced growth.
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Deposits and advances grew robustly, with strong asset quality and improved profitability. NIM guidance of 3.8% is reiterated, and digital initiatives are accelerating growth. Asset quality is stabilizing, and capital position remains strong.
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Strong Q2 FY26 performance with 12% YoY advances growth, stable margins, and improved asset quality. One-time INR 1,231 crore provision for discontinued crop loans was made, with no asset quality divergence. Margins expected to bottom in Q3 FY26.
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Operating profit rose 14% YoY, with strong deposit and loan growth, but Q1 asset quality metrics were impacted by a one-time technical adjustment, leading to higher slippages and credit costs. Margins are expected to normalize, and advances are projected to outpace industry growth.
Fiscal Year 2025
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Core operating profits rose 11% YoY in Q4 FY25, with strong deposit and loan growth, robust asset quality, and a CET1 ratio of 14.67%. Management expects improved growth and profitability as liquidity and deposit momentum strengthen.
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Strong operating performance with improved ROA and ROE, robust growth in focus segments, and prudent balance sheet management. Retail slippages are mainly from unsecured loans, with corrective actions in place. Medium-term loan growth is guided at 300-400 bps above industry.
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Steady operating performance with strong growth in focus segments, improved return ratios, and robust asset quality. Retail slippages are mainly from unsecured segments, with corrective actions in place. Digital innovation and prudent capital management continue to drive differentiation.
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Core operating profit grew 16% YoY, with strong deposit and focus segment growth, stable NIM, and improved asset quality. Citibank integration was completed ahead of schedule, and digital initiatives drove customer engagement. Credit costs rose due to timing, but are expected to normalize.