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Informist, Saturday, Jul. 18, 2026

 

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--Axis Bank Apr-Jun net profit INR 71.14 bln 
--Analysts saw Axis Bank Apr-Jun net profit at INR 69.17 bln 
--Axis Bank Apr-Jun total income INR 407.21 bln
--Axis Bank Apr-Jun net profit INR 71.14 bln vs INR 58.06 bln year ago
--Axis Bank Apr-Jun total income INR 407.21 bln vs INR 383.22 bln year ago
--Axis Bank gross NPA ratio 1.28% on Jun 30 vs 1.23% qtr ago 
--Axis Bank net NPA ratio 0.39% on Jun 30 vs 0.37% qtr ago
--Axis Bank Basel-III capital adequacy ratio 16.67% on Jun 30
--Axis Bank Apr-Jun domestic net interest margin 3.60% vs 3.73% quarter ago
--Axis Bank Apr-Jun overall net interest margin 3.46% vs 3.62% quarter ago 
--Axis Bank Apr-Jun provisions INR 22.23 bln vs INR 39.48 bln year ago 
--Axis Bank Apr-Jun net interest income INR 146.46 bln, up 8% on year 
--Axis Bank Apr-Jun cost of funds 5.04% vs 5.06% qtr ago, 5.39% year ago
--Axis Bank: Retail advances INR 6.76 tln on Jun 30, up 8% on year
--Axis Bank: Corporate advances INR 4.34 tln on Jun 30, up 38% on year
--Axis Bank SME advances INR 1.52 tln on Jun 30, up 25% on year
--Axis Bank Apr-Jun fresh slippages INR 55.66 bln vs INR 82.00 bln year ago 
--Axis Bank Q1 recoveries, upgrades INR 21.26 bln vs INR 21.47 bln year ago
--Axis Bank Apr-Jun loan write offs INR 23.99 bln vs INR 27.78 bln year ago
--Axis Bank provision coverage ratio 92% on Jun 30
--Axis Bank Q1 annualised credit cost 0.92% vs 0.75% qtr ago, 1.70% yr ago

 

By Aaryan Khanna and Sagar Sen

 

NEW DELHI – Axis Bank beat the Street's estimates for its bottom line as provisions fell sharply on year. The bank's net profit growth was the highest in three years, even as operating profit grew only marginally.

 

The private sector lender's profit after tax for the June quarter rose 22.5% on year to INR 71.14 billion, higher than the INR 69.17-billion average estimate of 16 brokerages. The bottom line was marginally higher than INR 70.71 billion a quarter ago.

 

Axis Bank's provisions other than tax fell to INR 22.23 billion in the reporting quarter, down nearly 44% on year and 37% sequentially. The bank said it had not tapped its INR 20-billion floating provision created in the March quarter to help manage contingencies. This helped prop up the bottom line as the bank's operating profit rose only 1.3% on year to INR 116.59 billion in the June quarter.

 

During the last quarter of 2025-26 (Apr-Mar), "the bank had proactively strengthened its balance sheet by voluntarily enhancing its prudent provisioning framework for standard assets, in line with our conservative risk-management philosophy," the bank said in a press release. "The bank has not drawn down from the West Asia provision created in Q4FY26 and the said provision continues to remain at INR 20.01 billion at June 30, 2026. This provision continues to be prudent and precautionary in nature and does not reflect any deterioration in asset quality or adverse credit trends in the Bank's loan or investment portfolio as of the reporting date," it said.

 

A sharp rise in tax paid by the bank during the reporting quarter weighed on its bottom line. In the June quarter, the bank paid INR 23.23 billion as tax, up almost 32% on year, while there was a tax write-back of INR 5.8 billion in the corresponding period last year.

 

During the reporting quarter, the bank reported robust on-year growth of 8% in net interest income at INR 146.46 billion. Total income of the bank grew more than 6% to INR 407.21 billion. It also reported 46.6% growth in interest on balances with Reserve Bank of India and other inter-bank funds at 4.51 billion.

 

The bank witnessed pressure on its margins, with the domestic net interest margin falling to 3.60%, a decline of 31 basis points from a year ago, and a sequential dip of 13 bps. Similarly, the overall net interest margin fell to 3.46% in the June quarter, down 34 bps on year and 16 bps on quarter. 

 

The cost of funds in Apr-Jun was marginally lower at 5.04% from the previous quarter, while it was 5.39% a year ago. The annualised credit cost was at 0.92% in the June quarter, compared with 1.70% a year ago and 0.75% in the previous quarter.

 

The lender's asset quality remained strong during the period. However, it deteriorated marginally from the previous quarter. The gross non-performing asset ratio was at 1.28% as on Jun. 30, down from 1.57% a year ago, but higher than 1.23% in the trailing quarter. The bank's net NPA ratio as of Jun. 30 was 0.39%, down from 0.45% a year ago, but marginally higher than 0.37% a quarter ago. The Basel-III capital adequacy ratio stood at 16.67% as of Jun. 30, compared with 16.85% as of Mar. 31. The provision coverage ratio was at 71% without technical write-offs, and 92% including the write-offs.

 

Gross fresh slippages during the quarter were INR 55.66 billion, compared with INR 46.75 billion in the previous quarter and INR 82 billion a year ago. Recoveries and upgrades from non-performing assets during the quarter were INR 21.26 billion, compared with INR 26.62 billion in the trailing quarter and INR 21.47 billion a year ago. In the reporting quarter, the bank wrote off NPAs totalling INR 23.99 billion, which was at INR 30.96 billion in the March quarter and INR 27.78 billion a year ago.

 

The bank reported strong loan book growth during the period, with advances growing 19% on year and 2% on quarter to INR 12.61 trillion as on Jun. 30. Retail loans, which accounted for 54% of the net advances of the bank, grew 8% on year to INR 6.76 trillion. Corporate advances were up 38% on year at INR 4.34 trillion, while advances to small and medium enterprises were up 25% on year at INR 1.52 trillion on Jun. 30.

 

On Friday, shares of the bank closed at INR 1,328.50 on the National Stock Exchange, up 1.6% from Thursday's close.  End

 

Edited by Avishek Dutta

 

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