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.
AXISBANK / Q4-FY25 / risks
Keep the risk register visible.
Axis Bank · Material risks, their source context, and severity in the latest available quarter.
Research layer active
ConCallIQ research layer
Signal, with the source still visible.
Use the controls below to narrow the view, then follow the evidence into the next layer of context.
Risk intelligence
Material risks this quarter
medium
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.
PSLC 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.
Deposit 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.