India's Axis Bank reported a smaller-than-expected rise in third-quarter profit on Thursday, as it set aside more funds for potential bad loans amid a slight deterioration in asset quality. The country's fourth-largest private lender by market capitalisation said its standalone net profit - which excludes earnings of its subsidiaries - rose 4% to 63.

The management believes FY25 credit growth will be anchored by deposit growth/LDR, which, analysts think, is still a challenge for Axis Bank

Executives at the country’s third largest private sector lender said the bank sees a degree of indebtedness in certain segments of the borrowers, which led to taking a deliberate call on slowing loan

Shares of India's Axis Bank fell 3.7% on Friday, a day after the lender posted a smaller-than-expected quarterly profit increase, weighed down by slower loan growth and higher provisions set aside for potential bad loans.

Axis Bank's shares drop 5.90% on NSE, Q3FY25 net profit rises 3.83%, provisions double, asset quality concerns grow.

For Axis Bank, the Net Interest Income (NII) is projected to grow by 10% year-on-year (YoY), while Profit After Tax (PAT) is expected to rise by a modest 3% YoY.

India's Axis Bank reported a 4% year-on-year rise in third-quarter profit on Thursday, helped by higher core lending income.

Results: Private lender Axis Bank on Thursday, reported a standalone net profit increase of 3.8%, reaching ₹6,304 crore in December 2024, compared to a profit after tax (PAT) of ₹6,071 crore in the corresponding quarter of the previous financial year.