Axis Bank
Asset quality impacted by high slippages: The bank has witnessed deterioration in asset quality in Q1FY2026.
The fresh slippages of loans jumped to Rs 8200 crore in Q1FY2026 compared with 4805 crore in previous quarter and Rs 4793 crore in the corresponding quarter last year. The recoveries and upgradations of NPAs was at Rs 2147 crore and the write-off of loans was at Rs 2778 crore in Q1FY2026. The standard restructured loan book of the bank stood at Rs 922 crore end June 2025. Provision coverage ratio was at 92.00% at end June 2025 compared to 94.00% a quarter ago and 94.00% a year ago. The capital adequacy ratio of the bank stood at 16.9% with Tier I ratio at 15.1% at end June 2025. The risk weighted assets of the bank has increased 12% YoY to Rs 1202481 crore end June 2025.Business Highlights:
Steady business growth: The business of the bank has increased 9% YoY to Rs 2221339 crore end June 2025. The advances increased 8% to Rs 1059724 crore. Deposits moved up 9% to Rs 1161615 crore at end June 2025.
CASA deposits ratio declines: The CASA deposits of the bank increased 5% YoY to Rs 468166 crore at end June 2025. The current account deposits increased 9% to Rs 163033 crore, while saving account deposits rose 3% to Rs 305133 crore end June 2025. The CASA ratio declined to 40.3% at end June 2025 compared to 41.8% at end June 2024, while eased from 40.8% a quarter ago. The term deposits have increased 12% to Rs 693449 crore end June 2025.
Steady loan growth: Advances growth was driven by retail loans rising 6% YoY to Rs 622960 crore at end June 2025, while MSME credit increased 16% to Rs 120872 crore at end June 2025. The corporate credit has moved up 11% to Rs 290067 crore end June 2025. The overseas credit has declined 10% to Rs 25825 crore end June 2025.
Investment book of the bank increased 14% YoY to Rs 360641 crore at end June 2025.
Margins ease: The bank has shown 5 bps YoY decline in cost of deposits to 5.39% in Q1FY2026. NIM has declined 8 bps YoY, while eased 17 bps qoq to 3.80% in Q1FY2026.
Branch expansion: The bank has added 3 branches and 193 ATMs in Q1FY2026, taking overall tally to 5879 branches and 14134 ATM`s end June 2025.
Book value of the bank stood at Rs 595.9 per share at end June 2025, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 579.3 per share at end June 2025.
Quarterly Performance
NII growth moderates as NIM declines: Bank has recorded 3% increase in the interest earned at Rs 31063.51 crore, while interest expenses increased 5% to Rs 17503.76 crore in Q1FY2026. NII rose 1% to Rs 13559.75 crore in the quarter ended June 2025.
Healthy growth in the core fee income: Bank has posted 10% growth in core fee income to Rs 5746 crore, while the treasury income jumped 250% to Rs 1420 crore, leading to 25% jump in the overall non-interest income to Rs 7258.06 crore in the quarter ended June 2025. However, the other non-interest income declined 47% to Rs 92 crore
Expenses ratio improves: The operating expenses of the bank rose 2% to Rs 9302.65 crore, as other expenses moved up 1% to Rs 6040.9 crore, while employee expenses increased 4% to Rs 3261.75 crore in Q1FY2026. Cost to income ratio improved to 44.7% in Q1FY2026 compared with 47.5% in Q1FY2025, helping the Operating Profit to increase 14% to Rs 11515.16 crore.
Provisions and contingencies jump: The bank has shown 94% jump in provisions to Rs 3947.66 crore. The loan loss provisions galloped 53% to Rs 3900 crore, while standard asset provisions rebounded to Rs 154 crore and other provisions to Rs 105 crore.
Effective tax rate declined to 23.3% in Q1FY2026 from 25.2% in Q1FY2025. Net Profit eased by 4% YoY to Rs 5806.14 crore during quarter ended June 2025.
Subsidiaries Performance
The Bank?s domestic subsidiaries delivered steady performance with Q1FY26 PAT of Rs 451 crores, up 4% YOY. Axis Finance has been investing in building a strong customer focused franchise. Its overall assets under finance grew 23% YOY. Retail book grew 26% YOY and constituted 47% of total loans. The focus in its wholesale business continues to be on well rated companies and cash flow backed transactions. Axis Finance remains well capitalized with total Capital Adequacy Ratio of 19.83%. The book quality remains strong with net NPA at 0.35%. Axis Finance Q1FY26 PAT was Rs 189 crores, up 23% YOY from Rs 154 crores in Q1FY25. Axis AMC?s overall QAAUM grew 15% YOY to Rs 3,35,607 crores. Its Q1FY26 PAT was Rs 130 crores, up 12% YOY from Rs 116 crores in Q1FY25. Axis Capital Q1FY26 PAT was Rs 38 crores, and completed 6 ECM transactions over this period. Axis Securities? revenues for Q1FY26 stood at Rs 360 crores and Q1FY26 PAT stood at Rs 89 crores. Its customer base grew 15% YOY.Financial Performance FY2025:
Bank has posted 6% increase in net profit to Rs 26373.48 crore in the year ended March 2025 (FY2025). The net interest income increased 9% to Rs 54347.82 crore, while non-interest income moved up 13% to Rs 25257.06 crore, pushing up net total income by 10% to Rs 79604.88 crore in FY2025. The operating expenses increased 6% to Rs 37499.95 crore, while provision and contingencies galloped 91% to Rs 7758.35 crore, allowing profit before tax to increase 4% to Rs 34346.58 crore in FY2025. The cost-to-income ratio improved to 47.1% in FY2025 compared to 48.7% in FY2024. An effective tax rate declined to 23.2% in FY2025 compared to 24.8% in FY2024. The net profit has increased 6% to Rs 26373.48 crore in FY2025.?
| Axis Bank: Results | ||||||
| Particulars | 2506 (3) | 2406 (3) | Var % | 2503 (12) | 2403 (12) | Var % |
| Interest Earned | 31063.51 | 30060.73 | 3 | 122677.04 | 109368.63 | 12 |
| Interest Expended | 17503.76 | 16612.50 | 5 | 68329.22 | 59474.15 | 15 |
| Net Interest Income | 13559.75 | 13448.23 | 1 | 54347.82 | 49894.48 | 9 |
| Other Income | 7258.06 | 5783.49 | 25 | 25257.06 | 22441.96 | 13 |
| Net Total Income | 20817.81 | 19231.72 | 8 | 79604.88 | 72336.44 | 10 |
| Operating Expenses | 9302.65 | 9125.48 | 2 | 37499.95 | 35213.28 | 6 |
| Operating Profits | 11515.16 | 10106.24 | 14 | 42104.93 | 37123.16 | 13 |
| Provisions & Contingencies | 3947.66 | 2039.28 | 94 | 7758.35 | 4063.09 | 91 |
| Profit Before Tax | 7567.50 | 8066.96 | -6 | 34346.58 | 33060.07 | 4 |
| EO | 0.00 | 0.00 | - | 0.00 | 0.00 | - |
| PBT after EO | 7567.50 | 8066.96 | -6 | 34346.58 | 33060.07 | 4 |
| Provision for tax | 1761.36 | 2032.32 | -13 | 7973.10 | 8198.64 | -3 |
| PAT | 5806.14 | 6034.64 | -4 | 26373.48 | 24861.43 | 6 |
| EPS*(Rs) | 74.9 | 78.1 | ? | 85.1 | 80.5 | ? |
| Equity | 620.2 | 618.2 | ? | 619.5 | 617.5 | ? |
| Adj BV (Rs) | 579.3 | 498.5 | ? | 568.0 | 478.3 | ? |
| * EPS and Adj BV are calculated on diluted equity as given for each year. Face Value: Rs 2, Figures in Rs crore | ||||||
| Source: Capitaline Corporate Database | ||||||
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