Axis Bank on Thursday reported a consolidated net profit growth of 3.8% for the quarter ended December 31, 2024, to Rs 6,304 crore versus Rs 6,071 crore posted in the year-ago period. It was below ET Now poll estimates of Rs 6,434 crore.Axis Bank earned interest income of Rs 30,954 crore in Q3FY25, witnessing an 11% gain over Rs 27,961 crore posted in the year-ago period.Meanwhile, it paid Rs 17,348 crore as interest in the reported quarter, up 12% over Rs 15,429 crore paid in the year-ago period.On a sequential basis, the profit after tax (PAT) was lower by 9% over Rs 6,918 crore in Q2FY25. 117299520Asset quality stableThe GNPA stood at 1.46% and declined by 12 bps YoY while the NNPA was reported at 0.35% flat YoY and QoQ.NII/NIMThe net interest income (NII) grew 9% YoY to Rs 13,606 crore while the net interest margin (NIM) for Q3FY25 stood at 3.93%.Also Read: Infosys Q3 profit rises 11% YoY to Rs 6,806 cr, revenue up 8%Operating ProfitThe bank’s operating profit for the quarter grew 15% YoY to Rs 10,534 crore. Core operating profit rose 14% YoY to Rs 10,102 crore. Operating cost growth further moderated to 1% YoY in Q3FY25 from 9% YoY in Q2FY25.Provisions & contingenciesProvision and contingencies for Q3FY25 stood at Rs 2,156 crore with specific loan loss provisions for Q3FY25 at Rs 2,185 crore. The bank holds cumulative provisions (standard + additional other than NPA) of Rs 11,875 crore at the end of Q3FY25. This is over and above the NPA provisioning included in the company’s PCR calculations.On an aggregated basis, the provision coverage ratio (including specific + standard + additional) stood at 151% of GNPA as of 31st December, 2024. Credit cost (annualized) for the quarter ended December 31, 2024, stood at 0.80%.NetworkThe bank added 130 branches during the quarter, taking its overall distribution network to 5,706 domestic branches and extension counters along with 202 business correspondent banking outlets (BCBOs) situated across 3,122 centres as of December 31, 2024, compared to 5,252 domestic branches and extension counters, and 156 BCBOs situated in 2,910 centres as of December 31, 2023.As of December 31, 2024, the bank had 14,476 ATMs and cash recyclers spread across the country.Management Take on Q3 Earnings Commenting on Axis Bank's earnings, MD & CEO Amitabh Chaudhry said the bank closed 2024 on a high, firming up its businesses, capabilities and presence across the length and breadth of the country with hundreds of new bank branches.“Digital and rural have been our big drivers, along with Sustainability and Inclusivity. This quarter we also rehashed our brand credo – celebrating our customer-first approach through our new campaign Har Raah Dil Se Open. It’s a reminder for us to stand committed to the evolving needs and aspirations of our customers. The Axis team is upbeat and eager to unlock the opportunities of 2025, supporting the ambitions of a resurgent India, as it looks forward to becoming the third largest global economy in the next few years," Chaudhry said.Key Q3 takeaways:Operating leverage aided healthy core operating profit performance, which grew 15% YoY.Operating expense growth moderated to 1% YoY and declined 5% QoQ.Focus on average deposits continues, CASA continues to be the best among large peer banks.Loan growth delivered across focus business segments.Advances were up 9% YoY and 1% QoQ with retail loans growing 11% YoY and 1% QoQ. The small business banking loans grew 20%.The company said that it ws well-capitalised with self-sustaining capital structure and adequate liquidity buffers. The overall capital adequacy ratio (CAR) stood at 17.01% with CET 1 ratio of 14.61%.