Axis Bank's Rising Profits Amid Unsecured Lending Challenges

Axis Bank's consolidated net profit for the September quarter rose by 19.29%, reaching Rs 7,401.26 crore, despite facing challenges in the unsecured lending segment. The bank's core net interest income and non-interest income increased, while cautious measures were taken to address risks in unsecured lending.

Axis Bank has reported a 19.29% increase in its consolidated net profit for the September quarter, totaling Rs 7,401.26 crore. However, the lender faces significant challenges within the unsecured lending sector.

For the third-largest private sector bank, standalone net profit rose 18% to Rs 6,917.57 crore for the July-September period of fiscal year 2024-25. Core net interest income went up 9%, following an 11% rise in net advances, though the net interest margin shrunk by 0.12% to 3.99%.

Despite the favorable income growth, concerns linger as unsecured loan defaults increase, reflecting growing borrower indebtedness, particularly in credit cards and personal loans. Axis Bank has responded by implementing stricter credit controls.

(With inputs from agencies.)