**Market Update: Axis Bank Q3 FY25 Performance Brief** **Headline Results: Mixed Numbers, Stock Under Pressure** Axis Bank delivered a muted Q3 FY25 report card, largely missing street estimates. While profitability showed modest growth, the lender grappled with slower balance sheet expansion and margin compression, triggering a sharp correction in its stock price. **Key Financial Metrics** * **Net Profit:** Reported at **₹6,304 crore**, up **4%** year-on-year (YoY). This fell short of broader analyst expectations for stronger bottom-line growth. * **Net Interest Income (NII):** Rose **9%** YoY to **₹13,606 crore**, supported by loan assets but weighed down by higher funding costs. * **Net Interest Margin (NIM):** Compressed to **3.93%**, down **6 basis points** sequentially. The squeeze reflects the ongoing industry-wide challenge of rising deposit costs outpacing yield improvements. **Business Growth vs. Expectations** * **Loan Growth:** Advances grew **9%** YoY to **₹10.14 lakh crore**, significantly lagging the earlier projected **14%** rebound. Retail and SME segments drove the bulk of this growth, while corporate lending remained sluggish. * **Deposit Growth:** Deposits increased **9%** YoY, barely keeping pace with loan growth. This effectively dashed hopes of the bank outboundarying the industry average significantly this quarter. **Asset Quality & Provisions** * **Gross NPA:** Improved to **1.46%** (down **12 bps** YoY). * **Net NPA:** Stable at **0.35%**. * **Provisioning Spike:** Provisions for bad loans jumped **110%** to **₹2,155 crore**, a key factor dragging down net profit growth despite healthy operating numbers. **Market Reaction** Investors reacted negatively to the sluggish credit growth and margin pressure. The stock dropped approximately **3.5% to 5%** following the announcement, touching new 52-week lows as brokerages adjusted their outlooks downward. --- **Watch: Axis Bank Q3 Earnings Breakdown** [Axis Bank Q3 Results 2025: PAT Grows 3.8% YoY](https://www.youtube.com/watch?v=kTv6P6RIpsM) This video provides a concise visual summary of the earnings report, highlighting the specific areas where the bank missed analyst estimates. http://googleusercontent.com/youtube_content/0