Private sector lender Axis Bank Ltd. reported its financial results for the June 2025 quarter (Q1FY26) on Wednesday, July 17. The bank posted a net profit of ₹5,806 crore, registering a 4 percent decline compared to ₹6,034.64 crore in the same quarter last year.
The bank’s Net Interest Income (NII) — a key indicator of its core lending operations — stood at ₹13,560 crore, up 0.8 percent year-on-year. This marginal growth in NII reflects modest expansion in interest-earning assets and spreads during the quarter.
Axis Bank’s asset quality deteriorated slightly on a sequential basis. Gross Non-Performing Assets (NPA) rose to 1.57 percent, compared to 1.28 percent at the end of the March 2025 quarter. Similarly, Net NPA increased to 0.45 percent from 0.33 percent in the previous quarter.
The bank reported a significant spike in provisions during the quarter. Total provisions rose to ₹3,947 crore, up sharply from ₹1,359 crore in Q4FY25 and ₹2,039 crore in Q1FY25. The increase in provisions likely contributed to the dip in bottom-line profit and reflects a more cautious stance on credit risk.
Other Highlights
Axis Bank reported a strong operating performance for the June 2025 quarter (Q1FY26), with operating profit rising 14 percent year-on-year (YoY) and 7 percent sequentially to ₹11,515 crore. The bank’s operating revenue grew 8 percent YoY, while operating expenses rose just 2 percent YoY and declined 5 percent quarter-on-quarter (QoQ), leading to positive operating jaws — a healthy indicator of efficiency gains.
Non-interest income rose 25 percent YoY, driven by a 10 percent rise in fee income, with retail fee income growing 9 percent YoY. The bank also maintained a strong fee composition, with granular fees accounting for 91 percent of total fees. On the deposit front, total deposits grew 9 percent YoY on a monthly average balance (MEB) and quarterly average balance (QAB) basis. Within this, term deposits rose 12 percent, current account (CA) deposits grew 9 percent, and savings account (SA) deposits increased by 3 percent YoY.
The bank continued to make notable progress in its focus segments. The combined mix of Small Business Banking (SBB), SME, and Mid-Corporate (MC) loans stood at ₹2,472 billion, forming 23 percent of total loans, reflecting an 820 basis points improvement over the past four years. SME loans grew 16 percent YoY and 2 percent QoQ, while corporate loans increased by 9 percent YoY and 6 percent QoQ. The mid-corporate segment expanded a strong 24 percent YoY.
Axis Bank’s overall Capital Adequacy Ratio (CAR) stood at 16.85 percent, with Common Equity Tier-1 (CET-1) ratio at 14.68 percent, representing a net accretion of 62 basis points YoY and 1 basis point during the quarter. The bank delivered a consolidated Return on Assets (RoA) of 1.51 percent and an RoA of 1.66 percent excluding technical impacts. Consolidated Return on Equity (RoE) stood at 13.57 percent, improving to 14.90 percent excluding technical adjustments.
In the digital payments space, Axis Bank retained its market leadership in the UPI Payer PSP segment with a market share of approximately 32 percent. It also remained one of the largest players in the merchant acquiring business, holding a terminal market share of about 19.7 percent.
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