Axis Bank Faces Profit Decline Amid Strategic Shift

Axis Bank, the third-largest private sector lender in India, reported a slight decline in its March quarter profit due to higher loan loss provisions and lower trading income. The bank is focusing on profitability over growth, eyeing stability in the new fiscal year.

Axis Bank, India's third-largest private sector lender, reported a slight decline in its March quarter profits to Rs 7,117 crore, down from Rs 7,130 crore in the previous year. The drop is primarily attributed to a 64% increase in loan loss provisions and a significant fall in trading income.

CEO Amitabh Chaudhry emphasized a strategic shift prioritizing profitability over growth for FY25, despite not revealing any specific targets. The bank remains optimistic as it gears up for the new fiscal year, focusing on lending to mid-corporate, small businesses, and 'Bharat banking'.

Retail asset growth has slowed, but the bank plans to increase credit card acquisitions. While provisions have increased, the corporate, secured retail, and small businesses segments remain robust from an asset quality perspective.

(With inputs from agencies.)