Axis Bank on Thursday reported a 3.8 percent decline in June quarter net profit to Rs 5,806.14 crore from Rs 6,034.64 crore in the year-ago period. On a sequential basis, net profit fell 18 percent.
The bank’s operating profit for the quarter grew 14 percent year-on-year to Rs 11,515 crore. Core operating profit grew 5 percent on-year to Rs 10,095 crore, as per press release. Operating cost grew 2 percent on-year in Q1FY26.
The net interest income (NII) grew marginally by 0.8 percent to Rs 13,560 crore in the quarter under review against Rs 13,448 reported in the year ago period. On a sequential basis, net interest income fell by 2 percent.
In April June quarter, Net Interest Margin (NIM) of the bank stood at 3.80 percent, as compared to 3.97 percent in a quarter ago period and 4.05 percent in a year ago period.
Asset quality
The asset quality of the bank has deteriorated in the reporting quarter with gross non-performing asset (NPA) ratio rising to 1.57 percent as on June 30, 2025, from 1.28 percent as on March 31, 2025, and 1.54 percent as on June 30, 2024.
Similarly, net NPA ratio of the bank increased to 0.45 percent in Q1FY26, from 0.33 percent in Q4FY25, and 0.34 percent in Q1FY25, according to the investor presentation.
In absolute terms, gross NPA of the bank stood at Rs 17,765 crore in April-June quarter, as compared to Rs 14,490 crore in a quarter ago period, and Rs 16,211 crore in a year ago period. Net NPA stood at Rs 5,066 crore in reporting quarter, as compared to Rs 3,685 crore in a quarter ago period, and Rs 3,553 crore in a year ago period.
The country's third largest private sector lender reported provisions at Rs 3,948 crore in the June quarter of the fiscal year 2026, against Rs 1,359 crore in the March quarter.
Deposit and advances
The total deposits grew 9 percent on-year to 11.61 lakh crore, of which current account deposits grew 9 percent, saving account deposits grew 3 percent and term deposits grew 12 percent on-year, respectively. The share of CASA deposits in total deposits stood at 40 percent at the end of Q1FY26.
On Quarterly Average Balance basis, total deposits grew 8 percent on-year, within which savings account deposits grew 1 percent on-year, current account deposits grew 4 percent and term deposits grew 12 percent on-year basis, respectively.
The Bank’s advances grew 8 percent on-year and 2 percent on-quarter to Rs 10.59 lakh crore as on June 30, 2025. Retail loans grew 6 percent on-year to Rs 6.23 lakh crore crore and accounted for 59 percent of the net advances of the Bank.
The share of secured retail loans was 72 percent with home loans comprising 27 percent of the retail book. Small Business Banking (SBB) grew 15 percent on-year, Loan against property grew 21 percent on-year, Personal loans grew 5 percent on-year, Credit card advances grew 2 percent on-year and Rural loan portfolio grew 5 percent on-year.
Shares of Axis Bank settled nearly 1 percent lower at Rs 1,161 per share on the NSE in July 17 trading session, down 0.63 percent.
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