Axis Bank has reported its financial results for the second quarter of FY26 on October 15, 2025, showing a 25% decline in net profit to ₹5,557.51 crore. This drop is in comparison to ₹6,260.17 crore in the previous quarter. Despite this decline, the bank saw a modest 1.4% rise in total income, which reached ₹39,769.85 crore for the quarter, up from ₹39,203.77 crore in Q2 FY25.
The primary reason behind the profit drop was a ₹1,231 crore provision made for discontinued crop loan variants following a regulatory advisory. The bank’s net interest income (NII) saw a slight increase, rising by 2% to ₹13,745 crore, and its net interest margin (NIM) stood at 3.73%, surpassing analysts’ expectations of 3.5%.
Amitabh Chaudhry, Managing Director and CEO of Axis Bank, commented on the bank’s ongoing strategic initiatives to stay ahead in a rapidly evolving financial landscape. He noted that their focus on digital safety, expanding credit access, and empowering entrepreneurs has been central to their performance. The bank’s performance highlights the constant effort to innovate and serve a growing customer base across various segments.
Key Financial Highlights
- Net Profit: ₹5,557 crore (25% YoY decline; 11.2% QoQ decline)
- Total Income: ₹39,769 crore (1.4% YoY increase)
- Net Interest Income (NII): ₹13,745 crore (2% YoY increase)
- Net Interest Margin (NIM): 3.73%, above analyst estimates
- Provision for Discontinued Crop Loans: ₹1,231 crore
Despite a challenging quarter, Axis Bank’s focus on agile and inclusive growth strategies, alongside improved digital offerings, has allowed the bank to maintain stable asset quality. As of September 30, 2025, the bank’s gross non-performing assets (NPAs) stood at 1.46%, a slight improvement from the previous quarter’s 1.57%. This is reflective of the bank’s continued efforts to keep asset quality under control while also providing effective credit management solutions to its growing customer base.
Asset Quality and Provisions
Axis Bank’s asset quality remained relatively stable compared to the previous quarter, with gross NPAs at 1.46% and net NPAs at 0.44%. However, these numbers represent a slight deterioration from the previous year’s figures of 1.44% and 0.34% respectively. This shows that while the bank has made progress in stabilising its loan portfolio, the impact of broader market conditions continues to be felt.
The bank’s provision coverage ratio (PCR) was 70%, a slight decline from 71% in Q1 FY26 and 77% a year earlier. The lower PCR reflects the bank’s focus on managing asset quality through proactive provisions and cautious lending practices.
Looking Ahead
Despite the challenges faced in Q2 FY26, Axis Bank continues to position itself as a resilient and forward-looking financial institution. The bank’s strong foundation in digital transformation, improved access to credit, and its focus on inclusivity give it the flexibility to weather economic volatility and grow in a competitive banking environment.
In conclusion, while Axis Bank’s Q2 results reflect some short-term setbacks, the bank’s long-term strategies and its ability to maintain a stable asset base position it for steady growth in the coming quarters. Investors and stakeholders remain optimistic about the bank’s ongoing transformation and its ability to deliver value in the evolving financial ecosystem.
Also Read:
- HDFC Life Insurance Q2 Results Highlights: Profit Up 3%, Net Premium Income Rises by 14%
- IRFC Q2 FY26 Results: Net Profit Increases 10% YoY, Revenue Declines 8% and ₹1.05 Dividend Announced
- Tata Communications Q2 Results Highlights: Net Profit Drops 19%, Revenue Grows by 6.5%
- ICICI Prudential Life Q2 FY26 Results: Net Profit Rises 18%, Net Premium Income Grows 10.1% YoY
- Bank of Maharashtra Q2 FY26 Results: Profit Surges 23% YoY, Total Income Grows 17%
Conclusion
Axis Bank’s Q2 FY26 results highlight the challenges of the current financial landscape, but its consistent focus on growth, asset quality management, and innovation continues to hold it in good stead. The decline in net profit was partly offset by the bank’s stable total income and the resilience of its asset quality metrics. The outlook remains cautiously optimistic, with the bank striving to lead in an increasingly digital and inclusive banking environment.
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