Promoting enduring value for our stakeholders
Dear Shareholders,
It is with great pride and optimism that
I present to you Axis Bank's Integrated
Annual Report for the financial year 2024·25. This year has been
a year of steady progress, thoughtful transformation, and continued focus on building a
resilient and future·ready institution. Underpinning our journey has been a strong
commitment to sound governance and robust compliance frameworks·ensuring that our
growth is not only sustainable but also responsible.
The global economy is in flux as the U.S. undertakes structural shifts
in trade, taxation, and regulation to address domestic imbalances.
According to the IMF, the global economy appears to be entering a
period of transition, as the long·standing economic framework of the past 80 years
undergoes a reset.
A key element has been the imposition of tariffs, particularly
targeting China, which has disrupted global supply chains and increased costs. While some
tariffs have been partially rolled back, uncertainty around future trade rules continues
to delay investments and tighten financial conditions. Currency volatility and
geopolitical tensions further weigh on global growth.
Reflecting this uncertainty, the IMF has revised its global growth
forecast for 2025 downward by 0.5% to 2.8%.
However, coordinated fiscal action in Europe and China, or resolution
of major conflicts, could help restore confidence and economic momentum.
India's moderated growth in fiscal 2025 reflected a period of
prudent fiscal and monetary consolidation. With the temporary effects of election related
spending pauses now behind us and a more measured fiscal easing anticipated in fiscal
2026, government expenditure is poised to return to a more normalised and growth
supportive trajectory, setting the stage for a renewed momentum. On the monetary front,
recent RBI actions CRR cuts, bond purchases, and liquidity easing are restoring credit
flow and supporting growth. Inflation below 4% has shifted policy focus squarely to
expansion. India remains resilient to global shocks, with strong services exports, rising
competitiveness in manufacturing, and gains from the “China + 1” strategy.
These structural strengths position
India for a robust and broad·based economic rebound. scal
We delivered a consolidated RoA of 1.77% and RoE of 16.89% in fiscal
2025 and our focus on high RAROC businesses continues to drive healthy growth across our
focus segment of Small Business Banking, SME, and Mid·Corporate, growing 14%
y·o·y and now forming ~23% of our loan book, up ~740 bps in four years. Our
balance sheet remains strong, backed by best·in·class asset quality metrics
with net
NPA at 0.33% and 11,957 crores in non·NPA provisions. With a
CET·1 ratio of 14.67%, up 93 bps y o y largely through organic accretion, we are
well·capitalised to invest in future growth. Prudent risk management, disciplined
execution, and strong internal accruals continue to position us well to deliver,
high·quality performance.
Our customer obsession program, Sparsh 2.0 is a bold step
forward·seamlessly connecting our people first initiatives to elevate customer
experiences, driving stronger Net Promoter Score, and unlocking meaningful business growth
through empathy and excellence.
We're proud to share that Axis Bank has once again been rated in
the top tier “Leadership” category in the Indian Corporate Governance Scorecard
(December 2024) by IiAS. This recognition reflects our unwavering commitment to corporate
governance and regulatory excellence. onal The evaluation, based on globally benchmarked
G20/OECD principles, reaffirms our industry leadership and dedication to the highest
standards of accountability and transparency. At Axis Bank, our philosophy is anchored in
sustainable growth and creating long term value for our customers and stakeholders. In
recent years, we have made substantial strides in reinforcing our governance architecture
and strengthened over risk, audit, and compliance functions.
Our steadfast commitment to excellence in corporate governance is
reflected in the rigorous standards we uphold and the comprehensive policies we implement
across every dimension of our operations.
At Axis Bank, ESG is deeply embedded in our strategic vision, with
dedicated structures driving focused action. In 2021, we became the first Indian bank to
establish a standalone Board·level
ESG Committee, aligning diverse priorities under a unified ESG agenda.
This Committee met four times in fiscal 2025, reviewing progress and guiding new
initiatives. Our ESG commitments are aligned with the UN Sustainable Development Goals and
India's Paris Agreement commitments.
We exceeded our 30,000 crores sustainable wholesale lending target er
aft well ahead of the 2026 deadline, consequently, we raised our target to 60,000 crores
by 2030, with 48,412 crores already achieved by March 31, 2025. We continue to maintain an
exposure to coal and thermal power well within our glide path limits. Additionally, as
part of our commitment to achieving 30% women representation in our workforce by fiscal
2027, we are actively scaling up diverse hiring across all businesses and support
functions, while launching innovative initiatives that truly reflect our values.
As a responsible corporate citizen, we continue to drive meaningful
impact through our CSR arm, Axis
Bank Foundation (ABF), and strategic partnerships. Since 2018, ABF has
been relentlessly driving ‘Mission 2 Million' to uplift 2 million households
across India. By fiscal 2025, ABF not only met but surpassed this goal impacting ~2.05
million participants across
300 districts in 32 states and union territories as of March 31, 2025.
In this alone, we reached ~0.39 million participants nationwide.
Moreover, we amplified our impact in the Education theme expanding Axis DilSe?
to new remote frontiers, forging powerful partnerships to strengthen education systems,
and backing research and innovation.
Each achievement is a step toward a greater vision one where
opportunity, equity, and sustainability are accessible to all. The Bank's journey is
far from over, and its commitment to creating lasting impact has never been stronger.
Guided by the ‘open' philosophy, we will
continue to push boundaries, scale impact, and build a future where inclusive growth and
sustainability go hand in hand.
As we look ahead, I would like to take a moment to acknowledge Mr.
Rajiv Anand, who will be retiring in August 2025 an exceptional 16 year journey with Axis
Group. His visionary leadership has been instrumental in shaping our digital and
innovative solutions led franchise. We thank him for his invaluable contributions and
lasting impact on the Bank's growth and culture.
Warm regards,
N. S. Vishwanathan
Independent Director and
Part time Chairman