Axis Bank on Wednesday posted a 4.1% jump in its net profit for the first quarter, but missed street estimates likely due to rising cost of capital.

What Happened: The private lender’s net profit came in at ₹6,034.64 crore for the quarter ended June 30, compared with the ₹5,797.1 crore it earned in the same quarter a year ago. This fell short of analyst estimates of ₹6,458 crore.

The bank’s net interest income, which is the difference between interest earned on loans and interest paid on deposits, stood at ₹13,448.23 crore for the quarter, up 12.5% from ₹11,958.77 crore posted a year ago. The figure came only slightly higher than analyst forecasts of ₹13,361 crore.

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This week, Axis Bank partnered with One 97 Communications Limited, the parent company of Paytm, to provide advanced point-of-sale solutions and electronic data capture devices to its merchant network.

Key Numbers: Axis Bank’s net interest margin, a key profitability metric dropped to 4.05% from the 4.1% posted in the same quarter last year. The figure was in line with street expectations of 4.04%.

The Bank's reported gross non-performing assets (NPA) and net NPA levels as at June 30 went up to 1.54% and 0.34%, respectively, as against 1.43% and 0.31% as on March 31.

Gross slippages during the quarter stood at ₹4,793 crore, compared with ₹3,471 crore in Q4FY24 and ₹3,990 crore in Q1FY24.

Price Action: Ahead of results, Axis Bank’s stock ended Wednesday’s session at ₹1,240.20, down 1.82%. The stock has gained over 12% so far this year.

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