Axis Bank Reports Q2FY26 Results: Core Operating Profit Up, Strong Deposit & Advance Growth Amidst Higher Provisions
Axis Bank reported Q2FY26 results with 3% YOY core operating profit growth and strong deposit/advance growth. Net profit declined 26% YOY due to higher provisions, including an RBI-advised one-time provision.
As a major private sector bank, Axis Bank's quarterly financial results provide crucial insights into its performance, asset quality, and capital position, which are highly material for investors and the broader financial market.
While net profit declined significantly due to increased provisions, including a one-time RBI-advised provision, the underlying operational performance showed positive trends with core operating profit growth, robust deposit and advance growth, stable asset quality, and strong digital banking metrics. The MD&CEO expressed a positive outlook on strategic progress.
Axis Bank Limited announced its unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025. * Q2FY26 Performance Highlights: * Net Interest Income (NII) stood at ₹13,745 crores, a 2% year-on-year (YOY) increase. Net Interest Margin (NIM) was 3.73%. * Fee income grew 10% YOY to ₹6,037 crores, with retail fees up 10% YOY, constituting 71% of total fee income. * Core Operating Profit increased 3% YOY to ₹9,915 crores. However, Operating Profit declined 3% YOY to ₹10,413 crores. * Net Profit for the quarter was ₹5,090 crores, down 26% YOY, primarily due to higher provisions and contingencies of ₹3,547 crores, which included an additional one-time standard asset provision of ₹1,231 crores as advised by the RBI for discontinued crop loan variants. * Total deposits grew 11% YOY (Month End Balance basis) and advances grew 12% YOY. * Asset quality remained stable, with Gross Non-Performing Assets (GNPA) at 1.46% (down 11 bps quarter-on-quarter (QOQ)) and Net NPA at 0.44% (down 1 bps QOQ). * Capital Adequacy Ratio (CAR) stood at 16.55%, with CET-1 ratio at 14.43%. * H1FY26 Performance Highlights: * Net Interest Income for H1FY26 was ₹27,304 crores, up 1% YOY. * Fee income grew 10% YOY to ₹11,783 crores. * Core Operating Profit grew 4% YOY to ₹20,010 crores. * Net Profit for H1FY26 stood at ₹10,896 crores, down 16% YOY. * Operational Highlights: * The bank acquired over 1 million cards in Q2FY26, crossing 15 million cards in force, and maintained its market-leading position in UPI Payer PSP with a market share of approximately 37% by volume. * Retail loans grew 6% YOY to ₹6,35,460 crores, accounting for 57% of net advances. * SBB+SME+MC (Small Business Banking + Small & Medium Enterprises + Mid Corporate) loans stood at ₹2,65,800 crores (₹2,658 billion), representing 24% of total loans. * Management Commentary: Amitabh Chaudhry, MD&CEO, Axis Bank, stated, "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."
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