More Stories

Informist, Monday, Jan. 26, 2026

 

Please click here to read all liners published on this story

--Axis Bank: Found adequate opportunities to lend to corporate sector
--CONTEXT: Axis Bank management's comments in post-earnings media call 
--Axis Bank: Have been cautious about retail portfolio growth 
--Axis Bank: About 73% of retail book is secured 
--Axis Bank: See margins declining in Q4 as repo rate cut plays out 
--Axis Bank: New portfolio showing lower delinquency 
--Axis Bank: Looking at various options for future of Axis Finance

 

By Divya Moolayattil & Sagar Sen

 

MUMBAI/NEW DELHI - Axis Bank Ltd.'s loan book proportionality changed in the December quarter with the corporate loan book continuing to grow at a healthy rate. "We found adequate opportunities to grow wholesale and small and medium enterprise (loans) in the current environment," a top executive of the bank told a post-earnings virtual press conference Monday.

 

The bank's management said it has not cut down on retail loans but continues to grow the book at a slower pace. Around 73% of the bank's retail loan book is currently secured. The unsecured share of the retail loan book had earlier peaked at 28–29%. The management said the bank has been cautious on retail lending after the stress seen in the financial year 2024-25 (Apr-Mar). Meanwhile, it has stepped up lending to corporations and small and medium enterprises.

 

"We are deliberately adopting a cautious stance on retail lending following the stress observed in the retail portfolio in the second half of the previous fiscal year," Chief Financial Officer Puneet Sharma said. Improving disbursements is the lead indicator of gradual recovery in retail growth, he added.

 

The bank's advances grew 14% on year and 4% sequentially to INR 11.59 trillion as on Dec. 31. Retail loans during the reporting quarter rose 6% on year to INR 6.44 trillion. In the same period, the bank's small and medium enterprises loan book grew 22% on year to INR 1.39 trillion and the corporate loan book grew 27% on year to INR 3.75 trillion.

 

Axis Bank expects the net interest margin to decline further during the March quarter. The management said the recent decline in the margin is on account of transmission of the repo rate cuts by the Reserve Bank of India, but the impact of the rate cut at the December meeting of the Monetary Policy Committee only started kicking in towards the end of the month, limiting its impact in the quarter. The management said the full effect of that cut will flow into the March quarter, given that 73% of loans are on floating rates of interest, with around 60% linked to the repo rate. Pending deposit repricing is expected to partly offset the pressure on loan yields.

 

The bank's net interest margin slipped to 3.64% in the reporting quarter from 3.93% a year ago. The net interest margin was also down 9 basis points on quarter. The lender's net interest income for the quarter rose 5% on year to INR 142.87 billion.

 

Responding to a query on a stake sale in the bank’s consumer lending arm, Axis Finance Ltd., the management said the option of selling stake to raise funds is not off the table. “We will make sure capital is not a constraint for the business (Axis Finance)," it said. "We continue to explore all options to be able to infuse capital into that business.” The process of raising capital is underway, taking into account recent regulatory guidance and changes in applicable norms, it added.

 

Axis Bank posted a net profit of INR 64.9 billion for the December quarter, up 3% on year and 28% sequentially. The pressure on the private-sector bank's margins capped year-on-year growth in its bottom line. Shares of Axis Bank had closed Friday at INR 1,257.50 on the National Stock Exchange, down 3.1%. The markets were closed Monday for Republic Day.  End

 

Edited by Rajeev Pai

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.