Axis Bank, India’s third-largest private sector lender, reported a marginal decline in net profit to ₹7,071 crore for the January–March quarter of FY26 (Q4FY26), as higher provisions and a decline in other income—driven by losses in trading income—impacted earnings. Sequentially, net profit grew 9 per cent. The bank has made an additional provision of ₹2,001 crore based on its assessment of evolving and unpredictable macroeconomic and geopolitical uncertainties.
“This approach is aligned with our practice to enhance resilience of our balance sheet during periods of elevated uncertainty while maintaining transparency and discipline in risk governance. 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. Our core asset quality metrics remain stable and within our risk guardrails,” the bank said in a statement.
How did Axis Bank’s core income and margins perform in Q4FY26?
Its net interest income (NII) grew 5 per cent year-on-year (Y-o-Y) to ₹14,457 crore in Q4FY26, on the back of robust growth in advances. Its net interest margin (NIM) declined 2 basis points over the last quarter to 3.73 per cent, while the overall NIM stood at 3.62 per cent. NIM is a measure of profitability of banks.
What is the trend in slippages and provisions?
The bank’s fresh slippages declined sequentially to ₹4,709 crore in Q4FY26, compared to ₹6,007 crore in Q3FY26.
Its provisions stood at ₹3,522 crore in Q4FY26, up nearly 160 per cent Y-o-Y from the same period last year. Provisions of the lender are up 59 per cent sequentially. Of the ₹3,522 crore of provisions made by the lender, ₹1,146 crore is towards loan loss provisions, and ₹2,376 crore is towards other provisions, which includes the ₹2,001 crore additional provision taken by the lender.
How did asset quality indicators improve?
The bank’s reported gross non-performing asset (NPA) and net NPA levels were 1.23 per cent and 0.37 per cent, respectively, as against 1.40 per cent and 0.42 per cent as on December 31, 2025.
What is the growth trend in balance sheet and deposits?
The bank’s balance sheet grew 17 per cent Y-o-Y and stood at ₹18.86 trillion as on March 31, 2026.
The total deposits grew 6 per cent sequentially and 14 per cent Y-o-Y on a month-end basis to ₹13.35 trillion. Of which, current account savings account (CASA) deposits grew 11 per cent Y-o-Y to ₹5.28 trillion, and term deposits grew 16 per cent Y-o-Y to ₹8.06 trillion.
How did advances grow across segments?
The bank’s advances grew 19 per cent Y-o-Y and 6 per cent sequentially to ₹12.33 trillion, driven by 38 per cent Y-o-Y growth in the corporate book, and 24 per cent Y-o-Y growth in the small and medium enterprises (SME) book. Retail, on the other hand, grew 8 per cent Y-o-Y.
According to Puneet Sharma, chief financial officer (CFO), Axis Bank, this provision is considered sufficient to absorb potential incremental provisioning requirements, even under the most adverse test scenario modeled for FY27. The adverse test scenario assumes average oil prices over $150 for 12 months, inflation at 7.4 percent, and currency depreciating by 20 per cent over current levels amongst some of the variables, he explained.
“There is nothing in our portfolio which tells us that these provisions will be used. It is not based on what we see today, but the whole scenario in West Asia remains uncertain, risks are uncertain, it remains volatile and obviously we hear of contradictory news practically on a daily basis. So, given that scenario, we thought that it was only prudent to make some provisions about how this crisis could evolve and obviously if this crisis gets resolved, then this provision based on our framework will be written back at some stage”, said Amitabh Chaudhry, MD&CEO, Axis Bank.
“Our growth outlook consistently has been that we will endeavour to grow faster than industry on a fiscal year basis, and we will gain 300 basis points higher than industry growth over the medium term, which is a 3 to 5-year horizon for us, closer to 3, not 5”, said Sharma.
“In an environment marked by uncertainty and volatility, our conservatism is a strategic advantage. The choices we made during the year have strengthened our foundation and enhanced our resilience. As we step into Financial Year 27, we are watchful of the ongoing uncertainties, however we stay confident in our ability to grow in a disciplined and calibrated manner, faster than the industry”, Chaudhry said.
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