Private lender Axis Bank on October 15 reported 26% decline in net profit at Rs 5,090 crore for the quarter ended September 30, 2025 as higher provisions for bad loans weighed on earnings. It reported net profit of Rs 6,918 crore in the year-ago period.
Moneycontrol's poll had pegged the lender's net profit at Rs 5,911 crore in Q2FY26.
The lender's total income rose 1% to Rs 37,595 crore in Q2FY26.
On October 15, Axis Bank's shares on NSE closed 0.4% lower at Rs 1,172.5 apiece.
Amitabh Chaudhry, MD&CEO, Axis Bank 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. We believe true transformation is not just about technology, it’s about relevance, strength, and responsibility. As we move forward, our focus remains on building a bank that is agile, inclusive, and an all-weather franchise. One that leads with purpose in a rapidly evolving world."
As on September 30, 2025 the bank’s reported gross NPA and net NPA levels were at 1.46% and 0.44% respectively, as against 1.57% and 0.45% as on June 30, 2025.
"Gross slippages during the quarter were Rs 5,696 crore, compared to Rs 8,200 crore in Q1FY26 and Rs 4,443 crore in Q2FY25. Recoveries and upgrades from NPAs during the quarter were Rs 2,887 crore. The Bank in the quarter wrote off NPAs aggregating Rs 3,265 crore," said the bank in a stock exchange filing.
The lender's net interest income rose 2% YoY to Rs 13,745 crore. Meanwhile, Axis Bank's net interest margins shrunk to 3.73% from 3.8% in the previous quarter and 3.99% in the year-ago quarter, following Reserve Bank of India's cumulative rate cuts of 100 basis points this year.
The Mumbai-based lender's provisions and contingencies are up 61% year-on-year at Rs 3,547 crore.
However, this was down 10% from the June quarter, when the bank missed profit estimates as its provisions surged due to what the bank said was a one-time industry benchmarking exercise.
"Provision and contingencies for Q2FY26 stood at Rs 3,547 crore. Specific loan loss provisions for Q2FY26 stood at Rs 2,133 crore. The Bank holds cumulative provisions (standard + additional other than NPA) of Rs 13,262 crore at the end of Q2FY26," said Axis Bank.
The bank's overall capital adequacy stood at 16.55% as against 16.85% in the quarter-ago period.
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