Axis Bank , one of India's leading private sector banks, reported a 26% year-over-year decline in net profit for the second quarter, despite a modest increase in revenue. The bank's financial results, while showing some positive trends in asset quality, highlight the challenges faced in the current economic environment.

Key Financial Highlights

Profit Decline and Revenue Growth

Axis Bank's net profit for Q2 FY2024 stood at ₹5,089.6 crore, falling short of market expectations of ₹5,692 crore. This represents a significant 26.43% decrease from ₹6,917.6 crore reported in the same quarter last year. Despite the profit decline, the bank managed to increase its revenue by 1.22% year-over-year, reaching ₹37,594.8 crore.

Expense Management and Interest Income

The bank's expenses saw an increase of 15.45% compared to the same quarter last year, rising to ₹13,503.6 crore. This surge in expenses contributed to the pressure on profitability. However, Axis Bank's net interest income, which is the difference between interest earned and interest expended, showed a slight improvement. The interest earned increased by 1.71% to ₹17,225.7 crore compared to the previous year.

Asset Quality Improvement

On a positive note, Axis Bank reported an improvement in its asset quality metrics:

• Gross Non-Performing Assets (GNPA) ratio decreased to 1.46% from 1.57% in the previous quarter.
• Net Non-Performing Assets (NNPA) ratio slightly improved to 0.44% from 0.45% quarter-over-quarter.

This improvement in asset quality suggests that the bank's risk management strategies and recovery efforts are yielding results, even in a challenging economic environment.

Operating Performance

The bank's operating profit for Q2 FY2024 was ₹17,466.6 crore, showing a marginal decline of 6.71% compared to the same period last year. The Operating Profit Margin (OPM) stood at 56.40%, down from 61.55% in Q2 FY2023, indicating some pressure on operational efficiency.

Outlook

While Axis Bank faces challenges in maintaining profit growth, the improvement in asset quality and the slight increase in revenue provide some positive signals. The bank's ability to manage expenses and capitalize on growth opportunities in the coming quarters will be crucial for its performance.

Investors and analysts will be closely watching how Axis Bank navigates the current economic landscape, balances its growth initiatives, and maintains asset quality in the subsequent quarters.

Axis Bank , one of India's leading private sector banks, has taken a significant step towards enhancing shareholder rights for its Global Depositary Receipt (GDR) holders. On October 15, 2025, the bank's Board of Directors approved an Amended and Restated Deposit Agreement for its GDRs, introducing key changes that could reshape investor participation.

Voting Rights for GDR Holders

The most notable amendment to the agreement is the provision of voting rights to GDR holders. This move aligns with global best practices and potentially increases the attractiveness of Axis Bank's GDRs to international investors. However, these voting rights come with a crucial caveat: GDR holders must demonstrate compliance with Section 12B of the Banking Regulation Act, 1949, as well as applicable master directions and guidelines.

Regulatory Approval Pending

It's important to note that this board approval is subject to authorization from the Reserve Bank of India (RBI). This regulatory step is critical, given the sensitive nature of voting rights in the banking sector and the need to ensure compliance with India's banking laws.

Implications for Investors

The granting of voting rights to GDR holders, once approved by the RBI, could have several implications:

1. Enhanced Shareholder Engagement: GDR holders will have a more direct say in the bank's governance.
2. Increased Attractiveness: The GDRs may become more appealing to international investors seeking active participation.
3. Compliance Challenges: GDR holders will need to navigate the compliance requirements to exercise their voting rights.

Board Meeting Details

The board meeting where this decision was made lasted from 11:30 am to 6:50 pm IST, indicating the depth of discussions surrounding this significant change.

Market Impact

While it's too early to gauge the market reaction, this move could potentially impact Axis Bank's stock price and the trading of its GDRs. Investors and market analysts will be closely watching for the RBI's decision and any subsequent changes in GDR trading patterns.

Conclusion

Axis Bank's decision to amend its GDR agreement represents a progressive step towards empowering international investors. However, the real impact of this change will only be clear once regulatory approval is secured and the practical implications of the compliance requirements are better understood. Stakeholders should keep a close eye on further developments, particularly the RBI's response to this proposal.