Axis Bank Q2FY26 net profit falls 26% to ₹5,090 cr; deposits and advances rise 11–12% YoY
Mumbai: Axis Bank on Wednesday reported a 26% year-on-year decline in net profit to ₹5,090 crore for Q2FY26, compared to ₹6,918 crore in the same quarter last year, mainly due to higher provisions and a one-time standard asset provision.
The bank’s net interest income (NII) rose 2% year-on-year to ₹13,745 crore, while net interest margin (NIM) stood at 3.73%.
Fee income increased 10% year-on-year to ₹6,037 crore, supported by growth in retail and third-party product fees.
Total non-interest income for the quarter came in at ₹6,625 crore.
Operating profit declined 3% to ₹10,413 crore, while provisions and contingencies stood at ₹3,547 crore, including ₹1,231 crore towards discontinued crop loan variants following an RBI advisory.
Core operating profit, excluding trading income, was ₹9,915 crore, up 3% year-on-year.
During the first half of FY26, Axis Bank’s net profit fell 16% year-on-year to ₹10,896 crore, while core operating profit rose 4% to ₹20,010 crore.
The bank’s advances grew 12% year-on-year and 5% sequentially to ₹11.17 lakh crore as of September 30, 2025.
Retail loans rose 6% year-on-year, with strong growth in small business banking (up 14%), loans against property (up 22%), and credit card advances (up 7%). Corporate loans expanded 20%, while SME lending rose 19%.
Total deposits increased 11% year-on-year to ₹12.03 lakh crore, driven by a 12% rise in term deposits and a 13% rise in current account deposits.
The CASA ratio stood at 40%.
Asset quality remained stable, with gross NPA at 1.46% and net NPA at 0.44%. The provision coverage ratio was 70%.
The capital adequacy ratio stood at 16.55%, with a CET-1 ratio of 14.43%.
Axis Bank maintained its strong position in the digital ecosystem, with a 37% market share in UPI payer PSP transactions and over 15 million credit cards in force.
About 97% of all retail transactions were digital during the quarter.
MD & CEO Amitabh Chaudhry said, “This quarter, we continued to push ourselves as an institution to deliver meaningful progress. From enhancing digital safety to expanding access to credit and empowering entrepreneurs, our innovations are designed to serve real needs with precision and scale.”
The bank’s balance sheet grew 11% year-on-year to ₹16.76 lakh crore, while shareholders’ funds rose 15% to ₹1.89 lakh crore.
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