The net interest income (NII) during the quarter rose marginally by 2% YoY to Rs 13,744 crore. The same stood at Rs 13,483 crore in the year-ago period.
The bank’s operating profit for the quarter fell 3% YoY to Rs 10,413 crore.
Fee income during the second quarter rose 10% YoY to Rs 6,037 crore. Retail fees too jumped 10% YoY and made up for 71% of the Bank’s total fee income. The trading income gain for the quarter stood at Rs 498 crore.
Provisions and Contingencies
Provision and contingencies for Q2FY26 rose by a massive 61% YoY to Rs 3,547 crore. Specific loan loss provisions for the quarter 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 September quarter.
These cumulative provisions translate to a standard asset coverage of 1.13% as on September 2025. On an aggregated basis, the provision coverage ratio stands at 147% of GNPA.
Asset Quality
At the end of the September quarter, the Bank’s reported gross NPA and net NPA levels reduced sequentially to 1.46% and 0.44% respectively, as against 1.57% and 0.45% as on June 2025. Recoveries from written off accounts for the quarter stood at Rs 641 crore. Gross slippages during the quarter were Rs 5,696 crore, compared to Rs 4,443 crore in Q2FY25.
Recoveries and upgrades from NPAs during the quarter were Rs 2,887 crore. The Bank said it wrote off NPAs of about Rs 3,265 crore in the quarter.
The company’s provision coverage, as a proportion of gross NPAs, stood at 70%, as compared to 71% in the June quarter and 77% in last year’s quarter.
Following an RBI advisory, post its FY25 annual inspection, the Bank said it made made an additional one-time standard asset provision of Rs 1,231 crore for two discontinued crop loan variants. The customer terms remain unchanged.
This standard asset provision will be written back to the P&L when all the outstanding loans in the two discontinued product variants are recovered or closed in normal course or by March 2028.
The net interest margin during the quarter came in at 3.73%.
Balance Sheet
Axis Bank’s balance sheet expanded 11% YoY to Rs 16.76 lakh crore as of September 2025, reflecting steady growth across deposits and advances.
Total deposits rose 4% quarter-on-quarter (QoQ) and 11% YoY on a month-end basis. Within this, current account deposits grew 13% YoY, savings deposits were up 4% QoQ and 6% YoY, while term deposits increased 4% QoQ and 12% YoY. The bank’s CASA ratio stood at 40%, underscoring a balanced deposit mix.
On a quarterly average balance (QAB) basis, total deposits grew 3% QoQ and 10% YoY, with savings deposits rising 3% QoQ and 4% YoY, current account deposits 2% QoQ and 7% YoY, and term deposits 4% QoQ and 13% YoY.
The bank’s loan book rose 12% YoY and 5% QoQ to Rs 11.16 lakh crore. Retail loans grew 2% QoQ and 6% YoY to Rs 6.35 lakh crore, accounting for 57% of total advances. Secured retail loans formed around 72% of the retail portfolio, with home loans comprising 26%.
Among key segments, Small Business Banking (SBB) grew 5% QoQ and 14% YoY, loans against property surged 22% YoY, personal loans grew 4% YoY, credit card advances rose 7% YoY, and rural loans were up 2% YoY.
The book value of Axis Bank’s investment portfolio stood at Rs 3.91 lakh crore, including Rs 3,26,914 crore in government securities, Rs 48,948 crore in corporate bonds, and Rs 15,989 crore in equities, mutual funds, and other securities.
On Wednesday, ahead of the results announcements, Axis Bank shares closed 0.37% lower at Rs 1,172 on NSE.
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