The present study investigates the financial position of Axis Bank Limited with special emphasis on Asset Quality and Capital Adequacy during the years 2020 – 2025. The research problem revolves around evaluating the financial strength and stability of the bank through an analysis of the bank's capability in managing credit risk and maintaining an adequate level of capital buffer. Some of the objectives of the study are to examine the trend in asset quality and capital adequacy.

Data collection for the current study was done through the use of secondary sources including annual reports, financial statement, investor presentation and Reserve Bank of India publications. A number of financial measures have been used in the study such as Gross Non-Performing Assets (GNPA), Net Non-Performing Assets (NNPA), Provision Coverage Ratio (PCR), and Capital Adequacy Ratio (CAR).

According to the results obtained from the study, there has been a marked improvement in the asset quality in Axis Bank Limited, which is evident in the declining level of non-performing assets and provision ratios. There has also been a consistent capital adequacy level of the bank which exceeded the regulatory requirement.