“We are positive about the recent GST cuts and the CRR cut flowing through the banking system,” said Amitabh Chaudhry, MD & CEO, Axis Bank. “We are seeing some positive signs on the retail disbursements, and we have already demonstrated strong corporate loan growth. It’s still early days and we will have to wait and watch to see the impact of GST cuts to flow through.”
Provisions and contingencies for the September quarter stood at ₹3,547 crore, a 61% rise versus ₹2,204 crore. The bank also made a standard asset provision of ₹1,231 crore following an advisory from the Reserve Bank of India (RBI) after its FY25 annual inspection. These pertain to two discontinued crop loan variants.
“These loans were given to farmers and categorised as priority sector lending loans, the bank has discontinued these two loan products,” said Puneet Sharma, chief financial officer, Axis Bank. “These loans are fully secured, and we do not expect much rise in credit costs due to these loans. The standard asset provision will be written back before March 31, 2028, or when the loan is closed whichever, the date comes earlier.”
Domestic net interest margin (NIM) stood at 3.8% at the end of the September quarter, versus 4.1% in the year-ago period.
The gross non-performing loan ratio stood at 1.5% for the quarter under review against 1.4% in the year ago period. While net non-performing loan ratio was at 0.4% versus 0.3% in the previous year period. Gross slippages during the quarter were ₹5,696 crore, compared to ₹8,200 crore in Q1FY26 and ₹4,443 crore in Q2FY25.
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