Axis Bank recorded a positive performance that has exceeded expectations of the third quarter of the financial year 2025 to 26 registering an increase of three percent in the standalone net profit in comparison to the previous year. The bank experienced a net profit of 6,490 crore rupees against the projected eight per cent decrease in the net profit of the bank.
The bank had recorded a profit of 6,304 crore rupees in the same quarter that year. Profits increased sharply on quarter on quarter basis by 27.5 per cent of what it was in the previous quarter of 5,090 crore rupees.
The net interest earned is the difference between what the bank earns in form of interest and what he pays in form of interest and it is increasing by five per cent annually to 14,287 crore rupees. Consistent growth in taking loans and deposits facilitated growth.
The net interest margin however went down to 3.64 per cent compared to 3.93 per cent in the previous year and this shows that spreads were under some pressure.
Other income, comprising of treasury gains, fees, commissions, and foreign exchange and derivatives earnings, rose by four per cent to 6,226 crore rupees.
Axis Bank Managing Director and Chief Executive Officer Amitabh Chaudhry reported that the fundamental operating performance of the bank was stable due to strong net income and excellent development in the fees income.
He also stated that the bank has kept on increasing its coverage and has since gone beyond 6000 branches in the nation. He also reported that the balance sheet and capital position of the bank is also healthy and it can concentrate on sustainable and profitable growth, whilst keeping a watch on global geopolitical risks.
On the front regarding the quality of assets, fresh slippages or the new bad loans were upgraded to 6,007 crore rupees as compared to 5,432 crore rupees of the last year and 5,696 crore rupees of the last quarter. The provisions on loan loss growth was 5.6 per cent year on year to 2,307 crore rupees.
This resulted in greater slippages but an increase in the gross non performing assets ratio to 1.40 per cent of gross advances as of December end 2025 which was an improvement over 1.46 per cent a year prior. But the net non performing assets were slightly increasing to 0.42 per cent as compared to 0.35 per cent.
The total net advances increased by 14 per cent annually to 11,59,052 crore rupees. Corporate loans recorded the quickest growth of 27 per cent then small and medium enterprise loans with 22 per cent. Retail loan increased by the sluggish rate of six per cent.
According to Chief Financial Officer Puneet Sharma, the share of corporate and SME loans in the total loop book rose primarily due to the fact that the bank identified good growth opportunities in the segments.
Meanwhile, it took its time in growing the retail loan portfolio as there was stress in the retail loans portfolio in the previous year. He further stated that retail loan disbursements which is a primary early indicator rose sharply and the bank anticipates the loan mix to slowly revert to previous levels.
The total deposits increased by 15 per cent to 12, 60,786 crore rupees. A small decrease in the proportionality of low cost CASA deposits was experienced to 37 per cent compared to 39 per cent.
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The bank, in its notes to accounts, indicated that it had provided another one time standard asset in the preceding quarter of 1,231 crore rupees concerning two discontinued products in crop loans after being advised by the RBI to do so.
The bank has explained that it will be reversed to profit once the loans are repaid or closed or by March 31, 2028, earlier or later. No difference in asset quality or NPA provisions was discovered during the RBI inspection.
