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Informist, Saturday, Apr. 25, 2026

 

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--Axis Bank Jan-Mar net profit INR 70.71 bln 
--Analysts saw Axis Bank Jan-Mar net profit at INR 69.36 bln 
--Axis Bank Jan-Mar total income INR 387.47 bln 
--Axis Bank Jan-Mar net profit INR 70.71 bln vs INR 71.18 bln year ago
--Axis Bank Jan-Mar total income INR 387.47 bln vs INR 380.22 bln year ago
--Axis Bank Jan-Mar provisions INR 35.22 bln vs INR 13.59 bln year ago
--Axis Bank gross NPA ratio 1.23% on Mar 31 vs 1.40% qtr ago 
--Axis Bank net NPA ratio 0.37% on Mar 31 vs 0.42% qtr ago
--Axis Bank Basel-III capital adequacy ratio 16.42% on Mar 31
--Axis Bank FY26 net profit INR 244.57 bln vs INR 263.73 bln year ago
--Axis Bank FY26 total income INR 1.53 tln vs INR 1.48 tln year ago
--Axis Bank to pay INR 1 per share final dividend
--Axis Bank to raise up to INR 350 bln via debt 
--Axis Bank to raise up to INR 200 bln via QIP, equity, others 
--Axis Bank Jan-Mar net interest margin 3.62% 
--Axis Bank Jan-Mar average liquidity coverage ratio at 117% 
--Axis Bank Jan-Mar net interest income INR 144.57 bln, up 5% on year
--Axis Bank: Excess SLR INR 1.51 tln as on Mar 31
--Axis Bank: CASA ratio at 40% as on Mar 31
--Axis Bank: Issued over 1 mln new credit cards in Jan-Mar
--Axis Bank: Total deposits INR 13.36 tln as on Mar 31, up 14% on year
--Axis Bank: Net advances INR 12.34 tln on Mar 31, up 19% on year
--Axis Bank: Retail advances INR 6.73 tln on Mar 31 vs INR 6.23 tln year ago 
--Axis Bank: SME advances INR 1.47 tln on Mar 31 vs INR 1.19 tln year ago
--Axis Bank:Corporate advances INR 4.13 tln on Mar 31 vs INR 2.99 tln yr ago
--Axis Bk Q4 cost of deposits 4.73% vs 4.77% qtr ago, 5.19% yr ago
--Axis Bank Jan-Mar cost of funds 5.06% vs 5.07% qtr ago, 5.50% year ago
--Axis Bank: Around 73% of retail loan book secured 
--Axis Bank Jan-Mar fresh slippages INR 47.09 bln vs INR 48.05 bln year ago 
--Axis Bank Q4 recoveries, upgrades INR 26.96 bln vs INR 27.90 bln year ago
--Axis Bank Jan-Mar loan write-offs INR 30.96 bln vs INR 33.75 bln year ago
--Axis Bank: Provision coverage ratio 70% on Mar 31, unch on qtr
--Axis Bk Q4 annualised credit cost 0.75% vs 1.02% qtr ago, 0.84% year ago

 

By Aaryan Khanna

 

NEW DELHI – Weak operating performance and a sharp rise in provisions on year pulled down Axis Bank Ltd.'s net profit in the March quarter, linked to a one-time standard asset provision. A reversal in tax expenses helped the bank beat analysts' estimates on its bottom line.

 

The private-sector lender posted a profit after tax of INR 70.71 billion in the reporting quarter, marginally lower on year but growing nearly 9% on quarter. The net profit beat the Street view of INR 69.36 billion, according to the average estimate of 13 brokerages.

 

The bank's provisions shot up to INR 35.22 billion in the March quarter, up from INR 13.59 billion a year ago and rising nearly 57% from a quarter ago. The provisions rose despite asset quality improving slightly as the bank added a one-time provision of standard assets of INR 20.01 billion during the quarter, it said in the notes to accounts. The measure is only prudential and does not indicate any concerns over asset quality, it said. 

 

The increased provisioning pulled down the bank's profit before tax to INR 64.91 billion, down 31% on year and nearly 25% lower from Oct-Dec. However, the bank reported a tax reversal of INR 5.80 billion in Jan-Mar, against an outgo of INR 22.76 billion a year ago and INR 21.40 billion in the previous quarter. The reversal was linked to its buyout of Citi India's consumer business in financial year 2022-23 (Apr-Mar), where it had decided to amortise the value of the intangibles, Axis Bank said. The tax expense in the March quarter was lower by INR 21.93 billion after the depreciation of these intangibles was allowed, the lender said. 

 

The bank's operating metrics were also lacklustre. Axis Bank's net interest income – the difference between its interest earned and expended – rose 4.7% on year and 1.1% on quarter to INR 144.57 billion, lower than the average of brokerage estimate of INR 147.19 billion. The overall and domestic net interest margin shrank 2 basis points sequentially to 3.62% and 3.73%, respectively. The bank's cost of deposits fell 4 bps on quarter to 4.73%, while the overall cost of funds was down 1 bp at 5.06%. Both costs were down sharply from the March quarter last year, when the cost of deposits was 5.19% and the cost of funds was 5.50%.

 

Fee income rose 4% on year to INR 65.61 billion but a trading loss of INR 6.06 billion in the March quarter pulled down the bank's other income to INR 60.23 billion, down 11% on year. This dragged total income growth on year to less than 2% at INR 387.47 billion. While the top line growth was sluggish, operating expenses grew 6.4% on year to INR 104.66 billion. Axis Bank's operating profit fell to INR 100.13 billion in the reporting quarter from INR 107.52 billion a year ago and INR 108.76 billion in Jan-Mar.

 

However, the bank's asset quality metrics improved sequentially and were stable from a year ago. The gross non-performing asset ratio was 1.23% as on Mar. 31, against 1.40% a quarter ago and 1.28% a year ago. The net non-performing ratio improved to 0.37% at the end of March, down 5 bps from Dec. 31 but rising 4 bps from last year.

 

Axis Bank reported fresh slippages of INR 47.09 billion in the March quarter, down from INR 48.05 billion a year ago. Write-offs also declined to INR 30.96 billion, down over 8% from the year-ago quarter. On the other hand, recoveries and upgrades also fell over 3% on year to INR 26.96 billion in the reporting quarter.

 

The bank's annualised credit cost shrank to 0.75% in the March quarter from 1.02% a quarter ago and 0.84% last year. The provision coverage ratio was flat sequentially at 70% without technical write-offs and 92% including the write-offs. The bank's capital adequacy ratio as on Mar. 31 was 16.42% and the common equity tier-I capital was 14.38%, well above the regulatory requirement of 8%.

 

In terms of its liquidity metrics, Axis Bank held statutory liquidity ratio-eligible securities worth INR 1.51 trillion on Mar. 31 in excess of the regulatory minimum of 18% of its net demand and time liabilities. Its liquidity coverage ratio on a consolidated basis averaged 117% in the March quarter, above the Reserve Bank of India's requirement of 100%.

 

Axis Bank's business growth exceeded the banking system as a whole in financial year 2025-26 (Apr-Mar). Net advances grew 18.5% to INR 12.34 trillion as on Mar. 31, against the 16.1% growth seen across scheduled commercial banks. The corporate loan book surged 38% on year to INR 4.13 trillion, while the small and medium enterprises portfolio registered a growth of 24% on year to INR 1.47 trillion. Retail advances lagged the other two segments, growing only 8% on year to INR 6.73 trillion.

 

Around 73% of the bank's retail loan book is secured and the large portfolio was well diversified, the bank said. Around a quarter of the book is home loans, followed by rural loans and loans against property. Axis Bank also issued 1 million new credit cards in the March quarter, with its market share in the segment at around 14%. However, credit card advances grew only 4% on year to INR 448.69 billion as on Mar. 31. 

 

Meanwhile, total deposits grew 13.9% on year to INR 13.36 trillion by the end of March, slightly quicker than the overall banking system growth of 13.5%. Current account and savings account deposit ratio stood at 40% on Mar. 31 from 39% on Dec. 31, the bank said.

 

For FY26, the bank's net profit fell 7.3% on year to INR 244.57 billion. The full year total income grew 3.4% to INR 1.53 trillion. The private-sector lender reported its earnings on Saturday. On Friday, its shares ended 0.3% lower at INR 1,365.90 on the National Stock Exchange.

 

In addition to the results for the quarter and financial year endedg March, Axis Bank's board approved a final dividend of INR 1 per share. It also approved that the bank could raise debt instruments worth INR 350 billion through Indian or foreign currency notes. The lender can also raise INR 200 billion through equity instruments, either in India or abroad. There was no timeline for the approvals but these typically last for the full financial year.  End

 

Edited by Deepshikha Bhardwaj

 

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