Axis Bank

Healthy business growth and asset quality

Axis Bank has reported 1% decline in net profit at Rs 7071.31 crore for the quarter ended March 2026 (Q4FY2026). Net Interest Income (NII) increased 5% while the core fee income of the bank also improved 3% in Q4FY2026. The Net Interest Margin (NIM) of the bank fell to 3.62% in Q4FY2026 compared to 3.97% in the corresponding quarter of previous year.

On Citibank?s India Consumer Business acquisition in 2022-23, the bank had recognized intangibles (excluding goodwill) amounting to Rs 8714.24 crore. Following the conclusion of regular assessment proceedings by the income tax authorities, tax depreciation on these intangibles was allowed. As a result, the tax expense for Q4FY26 and FY26 is lower by Rs 2193.20 crore, which includes the reversal of excess tax provisions made in prior years amounting to Rs 1129.80 crore, reduction of current year?s tax expense by Rs 265.85 crore and recognition of a deferred tax asset of Rs 797.55 crore.

During Q4FY26, the Bank proactively strengthened its balance sheet by voluntarily enhancing its prudent provisioning framework for standard assets. Based on an assessment of evolving and unpredictable macroeconomic and geopolitical uncertainties, the Bank created an additional one-time provision of Rs 2001 crore in Q4FY26. This action is prudent and precautionary in nature and does not reflect any deterioration in asset quality or adverse credit trends in the Bank?s loan or investment portfolio as of the reporting date.

On business front, the business growth accelerated to 16% at end March 2026 from 15% at end December 2025, as the loan book growth accelerated to 18%. However, the CASA ratio of the bank has declined to 39.6% at end March 2026 from 40.8% at end March 2025.

Steady NII growth on strong loan growth: Interest income increased 5% to Rs 32724.09 crore, while interest expenses moved up 5% to Rs 18266.91 crore in Q4FY2026. NII improved at steady pace of 5% to Rs 14457.18 crore in Q4FY2026.

Margins ease: The bank has shown 46 bps YoY decline in cost of deposits to 4.73% in Q4FY2026. NIM has eased 35 bps YoY to 3.62%, while fell 2 bps qoq to 3.62% in Q4FY2026.

Core fee income up, treasury posts loss: The non-interest income of the bank declined 11% to Rs 6022.55 crore in Q4FY2026 as the treasury segment witnessed loss of Rs 606 crore and recoveries and other income eased 75% to Rs 67 crore in Q4FY2026. However, the bank has posted 3% growth in core fee income to Rs 6561 crore in Q4FY2026,

Expense ratio deteriorates: The operating expenses of the bank increased 6% to Rs 10466.31 crore, as other expenses moved up 7% to Rs 7351.56 crore, while employee expenses rose 5%to Rs 3114.75 crore in Q4FY2026. Cost to income ratio deteriorated to 51.1% in Q4FY2026 compared with 47.8% in Q4FY2025. Operating Profit fell 7% to Rs 10013.42 crore.

Provisions and contingencies increase: The bank has shown 159% increase in provisions to Rs 3522 crore. The loan loss provisions fell 16% to Rs 1146 crore, while standard asset provisions increased 199% to Rs 455 crore and other provisions jumped to Rs 1921 crore in Q4FY2026.

PBT declined 31% to Rs 6491.21 crore in Q4FY2026. There was reversal of tax provisions of Rs 580.10 crore leading margins 1% decline in the Net Profit to Rs 7071.31 crore in Q4FY2026.

Asset quality improves: The bank has improved asset quality in Q4FY2026.

The fresh slippages of loans stood at Rs 4709 crore in Q4FY2026 compared with Rs 6007 crore in previous quarter and Rs 4805 crore in the corresponding quarter last year.

The recoveries and upgradations of NPAs stood at Rs 2696 crore, while the write-off of loans was at Rs 3096 crore in Q4FY2026.

The standard restructured loan book of the bank declined to Rs 780 crore end March 2026 compared to Rs 855 crore a quarter ago.

Provision coverage ratio was steady at 92.00% at end March 2026 compared to 92.00% a quarter ago and 94.00% a year ago.

The capital adequacy ratio of the bank stood at 16.4% with Tier I ratio at 14.8% at end March 2026.

The risk weighted assets of the bank has increased 17% YoY to Rs 1358532 crore end March 2026.

Asset Quality Indicators: Axis Bank
?	Mar-26	Dec-25	Sep-25	Jun-25	Mar-25	Variation		?
						QoQ	YoY	?
Gross NPA (Rs Crore)	16083.65	17166.78	17307.74	17764.66	14490.11	-6	11	?
Net NPA (Rs Crore)	4789.59	5154.29	5113.86	5065.99	3685.45	-7	30	?
% Gross NPA	1.23	1.40	1.46	1.57	1.28	-17	-5	?
% Net NPA	0.37	0.42	0.44	0.45	0.33	-5	4	?
% PCR	92.00	92.00	92.00	92.00	94.00	0	-200	?
% CRAR - Basel III	16.42	16.55	16.55	16.85	17.07	-13	-65	?
% CRAR - Tier I - Basel III	14.78	14.50	14.43	14.68	14.67	28	11	?
Variation in basis points for figures given in percentages and in % for figures in Rs crore

Business Highlights:

Business growth improves: The business of the bank has increased at an accelerated pace of 16% YoY to Rs 2568503 crore end March 2026, as advances growth improved to 18% to Rs 1232669 crore and deposits growth moderated to 14% to Rs 1335834 crore at end March 2026. With the faster growth in advances, the credit to deposit ratio increased to 92.3% at end March 2026 from 88.7% at end March 2025.

CASA deposits ratio improves qoq: The CASA deposits of the bank increased 11% YoY to Rs 528912 crore at end March 2026. The current account deposits moved up 11% to Rs 172021 crore, while saving account deposits increased 11% to Rs 321052 crore end March 2026. The CASA ratio eased to 39.6% at end March 2026 compared to 40.8% at end March 2025, while increased from 39.1% at end December 2025. The term deposits have increased 16% to Rs 806922 crore end March 2026.

Strong loan growth: Within the loan book, the retail loans increased 8% YoY to Rs 673468 crore at end March 2026, while MSME credit increased 24% to Rs 147159 crore. The corporate credit has also increased 36% to Rs 370028 crore end March 2026. The overseas credit has increased 50% to Rs 42014 crore end March 2026. The share of retail, agriculture and MSME (RAM) eased to 66.6% at end March 2026 compared to 71.2% at end March 2025.

Investment book of the bank increased 12% YoY to Rs 445033 crore at end March 2026.

Branch expansion: The bank has added 165 branches and reduced 42 ATMs in Q4FY2026, taking overall tally to 6275 branches and 12796 ATM`s end March 2026.

Book value of the bank stood at Rs 656.9 per share at end March 2026, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 641.2 per share at end March 2026.

Financial Performance FY2026:

Bank has posted 7% decline in net profit to Rs 24456.66 crore in the year ended March 2026 (FY2026). The net interest income increased 3% to Rs 56048.04 crore, while non-interest income moved up 3% to Rs 26130.85 crore, leading net total income to increase 3% to Rs 82178.89 crore in FY2026. The operating expenses increased 5% to Rs 39362.08 crore, while provision and contingencies jumped 71% to Rs 13262.83 crore. PBT declined 14% to Rs 29553.98 crore in FY2026. The cost-to-income ratio rose to 47.9% in FY2026 compared to 47.1% in FY2025. An effective tax rate eased to 17.2% in FY2026 compared to 23.2% in FY2025. The net profit has declined 7% to Rs 24456.66 crore in FY2026.

Axis Bank: Results
Particulars	2603 (3)	2503 (3)	Var %	2603 (12)	2503 (12)	Var %
Interest Earned	32724.09	31242.51	5	127032.23	122677.04	4
Interest Expended	18266.91	17431.97	5	70984.19	68329.22	4
Net Interest Income	14457.18	13810.54	5	56048.04	54347.82	3
Other Income	6022.55	6779.52	-11	26130.85	25257.06	3
Net Total Income	20479.73	20590.06	-1	82178.89	79604.88	3
Operating Expenses	10466.31	9837.69	6	39362.08	37499.95	5
Operating Profits	10013.42	10752.37	-7	42816.81	42104.93	2
Provisions & Contingencies	3522.21	1359.35	159	13262.83	7758.35	71
Profit Before Tax	6491.21	9393.02	-31	29553.98	34346.58	-14
EO	0.00	0.00	-	0.00	0.00	-
PBT after EO	6491.21	9393.02	-31	29553.98	34346.58	-14
Provision for tax	-580.10	2275.52	-125	5097.32	7973.10	-36
PAT	7071.31	7117.50	-1	24456.66	26373.48	-7
EPS*(Rs)	91.0	91.9	?	78.7	85.1	?
Equity	621.7	619.5	?	621.7	619.5	?
Adj BV (Rs)	641.2	564.5	?	641.2	564.5	?
* 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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