Beating analysts’ estimates, Axis Bank Ltd., India’s third-largest private sector bank, reported a 23% year-on-year increase in profit to ₹7,114 crore for the quarter ended June 30, 2026.
The Bank’s Net Interest Income (NII) for the quarter stood at ₹14,646 crore up 8% YOY. Net Interest Margin (NIM) stood at 3.46%.
Provision and contingencies for the quarter stood at ₹2,223 crore. Specific loan loss provisions stood at ₹2,079 crore. The Bank holds cumulative provisions (standard and additional other than Non-Performing Asset (NPA) of ₹15,608 crore as on June 30, 2026.
This is over and above the NPA provisioning included in the Provision Coverage Ratio (PCR) calculations.
“These cumulative provisions translate to a standard asset coverage of 1.24% as on 30th June 2026. On an aggregated basis, our Provision Coverage Ratio (including specific, standard and additional) stands at 161% of GNPA as on 30th June 2026,” the bank said in a filing.
Credit cost (annualized) for the quarter ended 30th June 2026 stood at 0.63%.
During Q4 of FY26, the Bank had proactively strengthened its balance sheet by voluntarily enhancing its prudent provisioning framework for standard assets, in line with its risk-management philosophy.
“Based on an assessment of evolving and unpredictable macroeconomic and geopolitical uncertainties, the Bank had created an additional one-time provision of ₹2,001 crores during Q4FY26. The Bank has not drawn down from the West Asia provision created in Q4FY26 and the said provision continues to remain at ₹2,001 crores at June 30, 2026,” it said.
“This provision continues to be 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,” it added.
As on 30th June 2026, the Bank’s reported Gross NPA and Net NPA levels were 1.28% and 0.39%, respectively, as against 1.57% and 0.45% as on 30th June 2025.
Recoveries from written-off accounts for the quarter were ₹961 crore. Reported net slippages in the quarter, adjusted for recoveries from written off pool was ₹2,479 crore of which retail was ₹2,614 crore and Wholesale was negative ₹271 crore.
Gross slippages during the quarter were ₹5,566 crore, compared to ₹4,675 crore in Q4FY26 and ₹8,200 crore in the year-ago period.
Recoveries and upgrades from NPAs during the quarter were ₹2,126 crore. The Bank in the quarter wrote off NPAs aggregating ₹2,399 crore.
As on 30th June 2026, the Bank’s provision coverage, as a proportion of Gross NPAs, stood at 70%, as compared to 70% as at 31st March 2026 and 71% as at 30th June 2025.
The fund-based outstanding of standard restructured loans implemented under the resolution framework for COVID-19-related stress (Covid 1.0 and Covid 2.0) declined during the quarter and as at 30th June 2026 stood at ₹913 crore that translates to 0.07% of the gross customer assets, the Bank said.
The Bank carries a provision of 17% on restructured loans, which is in excess of regulatory limits.
The Bank’s advances grew 19% YOY and 2% QOQ to ₹12,61,557 crore as on 30th June 2026. Retail loans grew 8% YOY to ₹6,75,546 crore and accounted for 54% of the net advances of the Bank.
The share of secured retail loans was 73%, with home loans comprising 26% of the retail book. Small Business Banking (SBB) grew 2% QOQ and 18% YOY, Loan against property grew 11% YOY, Personal loans grew 7% YOY, Credit card advances grew 5% YOY, and Rural loan portfolio grew 16% YOY.
SME book remains well diversified across geographies and sectors, grew 3% QOQ and 25% YOY to ₹1,51,619 crore. Corporate loan book grew 5% QOQ and 38% YOY. Mid-corporate book grew 10% QOQ and 27% YOY.
As on 30th June 2026, the Bank’s balance sheet grew 20% YOY and stood at ₹19,21,966 crore. The total deposits grew 3% QOQ and 18% YOY on a month-end basis, of which current account deposits grew 6% YOY, saving account deposits grew 14% YOY and term deposits 23% YOY.
