Personal loan asset quality normalization may take longer
Management noted that personal loan delinquencies may take a few more quarters to stabilize, despite early positive signals from underwriting changes.
medium · management_commentaryAxis Bank Ltd — Q4 FY25
Axis Bank reported a steady Q4 FY25 with core operating profit up 11% YoY and NIM improving 4 bps QoQ to 3.97%.
neutral
medium
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Risk Intelligence
Material risks this quarter
Concise cards keep the risk register scannable while preserving evidence-level context in the underlying quarter data.
Risks
Margin compression from rate cuts
With repo-linked loans repricing faster than deposits, NIMs could face pressure in a rate cut cycle, though management expects to offset via mix and savings rate cuts.
medium · analyst_questionPSLC costs may persist in FY26
The bank incurred INR 591 crore in PSLC purchase costs in Q4 to meet PSL shortfalls, and similar costs may recur in FY26 due to MFI and Gold Loan classification issues.
medium · management_commentaryDeposit growth still below industry average
Despite QoQ improvement, deposit growth remains below the industry average, and management did not provide a timeline for closing the gap.
medium · analyst_question