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Axis Bank Ltd. Key Financial Ratios

NSE:AXISBANK | BANKS

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Company Performance

2-year trend showing revenue, gross profit, and net profit

FY 2024 - FY 2025

Axis Bank Ltd.'s revenue grew 13.0% to 1,559.17B and net profit grew 6.3% to 280.55B YoY in FY2025, indicating healthy business momentum.

Understanding Company Performance

In FY 2025, Axis Bank Ltd.'s revenue grew by 13.0% year-over-year. Revenue = interest earned + other income. Gross Profit = revenue minus interest expenditure. Net Profit is the bottom line after all expenses, provisions, and taxes. Consistent growth across all three signals a healthy, expanding bank.

Net Interest Margin (NIM)

2-year trend showing profitability efficiency

FY 2024 - FY 2025

Axis Bank Ltd.'s NIM of 4.0% in FY2025 indicates healthy interest spreads.

Understanding Net Interest Margin

In FY 2025, Axis Bank Ltd. reported a NIM of 3.98%. NIM = (Interest Earned - Interest Paid) / Average Earning Assets. For Indian banks, 2.5-4% is typically healthy. Higher NIM indicates better spread management between lending rates and deposit costs. Consistent or improving NIM suggests strong pricing power.

Net NPA Ratio

2-year trend showing asset quality

Axis Bank Ltd.'s net NPA ratio of 0.3% in FY2025 indicates strong asset quality with well-managed credit risk.

Understanding Net NPA Ratio

In FY 2025, Axis Bank Ltd. reported a net NPA ratio of 0.33%. Net NPA Ratio = (Gross NPAs - Provisions) / Total Loans. Measures bad loans after provisions as a percentage of total loans. Below 2% is healthy for Indian banks; above 3-4% signals stress. A declining trend indicates improving asset quality and effective risk management.

Return on Assets (ROA) & Return on Equity (ROE)

2-year trend showing profitability efficiency

Axis Bank Ltd.'s ROA of 1.7% in FY2025 indicates excellent asset utilisation, with ROE at 14.9%.

Understanding ROA & ROE

In FY 2025, Axis Bank Ltd. reported an ROA of 1.69% and an ROE of 14.9%. ROA = (Net Income / Total Assets) x 100; ROE = (Net Income / Equity) x 100. The gap between ROE and ROA reveals leverage impact. For Indian banks, ROA of 0.8-1.5% and ROE of 12-18% are healthy. ROA is the primary indicator as it cannot be inflated by leverage.

Loan to Deposit Ratio

2-year trend showing liquidity and lending efficiency

Axis Bank Ltd.'s loan-to-deposit ratio of 92.3% in FY2025 indicates elevated lending relative to deposits — monitor liquidity.

Understanding Loan to Deposit Ratio

In FY 2025, Axis Bank Ltd. reported a loan-to-deposit ratio of 92.3%. LDR = (Total Loans / Total Deposits) x 100. Optimal range is 70-85% for Indian banks. Above 90% signals liquidity risk; below 65% suggests deposit underutilisation. A stable trend indicates balanced lending practices and adequate liquidity management.

Financial Leverage Ratio

2-year trend showing capital structure efficiency

Axis Bank Ltd.'s financial leverage of 8.8x in FY2025 indicates conservative leverage — equity may be underutilised.

Understanding Financial Leverage Ratio

In FY 2025, Axis Bank Ltd. reported a financial leverage ratio of 8.8x. Financial Leverage = Total Assets / Total Equity. Expressed as a multiple (e.g., 10x). For Indian banks, 10-15x is typical. Higher leverage amplifies returns but increases risk. Regulatory capital requirements set upper limits. Compare with peers for context.

Borrowings to Networth Ratio

2-year trend showing leverage and financial stability

Axis Bank Ltd.'s borrowings-to-networth ratio of 117.5% in FY2025 indicates acceptable borrowing levels for a bank.

Understanding Borrowings to Networth Ratio

In FY 2025, Axis Bank Ltd. reported a borrowings-to-networth ratio of 117.5%. Borrowings/Networth = (Total Borrowings / Shareholders' Equity) x 100. Lower is better — indicates less reliance on debt. Banks naturally carry higher leverage than other industries. Consistent increases may signal aggressive growth or capital constraints. Compare with peer banks for context.

Stock Dilution

Year-over-year change in diluted shares outstanding

Axis Bank Ltd.'s diluted shares increased 0.2% YoY in FY2025 — share dilution.

Over 2 years (FY2024–FY2025), diluted shares increased 0.2% from 3.10B to 3.11B, indicating cumulative dilution.

Understanding Stock Dilution

In FY 2025, Axis Bank Ltd.'s diluted shares increased by 0.2% year-over-year. Diluted Shares accounts for stock options, warrants, and convertibles. Positive YoY change means dilution (red); negative means buybacks (green). Consistent dilution above 5% annually is a red flag.

Data from audited consolidated filings. For educational purposes only — not investment advice. Last update: FY 2025