ICRA Ratings has assigned [ICRA]AAA (Stable) to Axis Bank's infrastructure bonds and reaffirmed ratings for various instruments.
The total rated amount is ₹1,23,505 crore.
Ratings Reaffirmed:
Basel III Tier I bonds: [ICRA]AA+ (Stable) for ₹5,000 crore
Basel III Tier II bonds: [ICRA]AAA (Stable) for ₹22,730 crore
Infrastructure bonds: [ICRA]AAA (Stable) for ₹27,775 crore
Certificates of Deposit: [ICRA]A1+ for ₹60,000 crore
Fixed Deposit: [ICRA]AAA (Stable)
Ratings Assigned:
Infrastructure bonds: [ICRA]AAA (Stable) for ₹8,000 crore.
ICRA has withdrawn ratings on matured Basel III Tier II bonds (₹850 crore) and infrastructure bonds (₹5,705 crore) as they have been fully redeemed.
The ratings are supported by Axis Bank's strong position in the Indian financial system as the third-largest private sector bank.
Axis Bank’s net advances grew by 7.8% YoY to ₹10.41 lakh crore as on March 31, 2025, with retail book accounting for ~60% of its loan book.
The bank's capitalisation profile remains strong with CET I ratio at 14.67% and CRAR at 17.07% as on March 31, 2025.
The bank's overall deposit base grew at a healthy rate of 10% YoY to ₹11.73 lakh crore as on March 31, 2025, with low-cost CASA at 40.8%.
ICRA expects Axis Bank to maintain an RoA of more than 1.4%, which shall be sufficient for its growth capital requirements over the medium term.
The gross fresh NPA generation rate normalised to 2.0% (annualised) in FY2025. Gross and Net NPAs stood at 1.4% and 0.4%, respectively, as on March 31, 2025.