Axis Bank Q1 Results: Net Profit Declines 4% YoY; Gross NPA at 1.57%

Private sector lendiner Axis Bank’s standalone net profit has declined by 4 per cent to Rs 5,806 crore in the first quarter of financial year 2025-26, from Rs 6,035 crore during the same period last financial year. The bank’s operating profit for the quarter grew 14 per cent year-on-year (YoY) to Rs 11,515 crores while the Net Interest Income (NII) saw marginal jump of 1 per cent to Rs 13,560 crores and Net Interest Margin (NIM) stood at 3.80 per cent. 

The bank’s provisions, however, nearly doubled to Rs 3,947.7 crore in Q1 FY26 from Rs 2,039 crore in Q1 FY25. Specific loan loss provisions for the quarter stood at Rs 3,900 crores.  

The bank holds cumulative provisions (standard + additional other than NPA) of Rs 11,760 crores at the end of Q1FY26. This is over and above the NPA provisioning included in the bank’s PCR (provision coverage ratio) calculations.  

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On an aggregated basis, the PCR (including specific + standard + additional) stood at 138 per cent of Gross NPA as of June 30, 2025. 

The Gross NPA and Net NPA levels were 1.57 per cent and 0.45 per cent respectively, as against 1.28 per cent and 0.33 per cent as on 31st March 2025. The net slippages in the quarter adjusted for recoveries from written off pool was Rs 5,149 crore while gross slippages were Rs 8,200 crore, compared to Rs 4,805 crore in Q4FY25 and Rs 4,793 crore in Q1 FY25. Dring Q1 FY26, the bank wrote off NPAs aggregating Rs 2,778 crore. 

Meanwhile, the bank’s balance sheet grew 9 per cent and stood at Rs 16,03,308 crore as on June30, 2025.  

The total deposits grew 9 per cent YoY on month end basis, of which current account deposits grew 9 per cent, saving account deposits grew 3 per cent and term deposits grew 12 per cent, respectively. The share of CASA deposits in total deposits stood at 40 per cent at the end of Q1FY26. 

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The bank’s advances grew 8 per cent YoY and 2 per cent QoQ to Rs 10,59,724 crores as of June 30, 2025. 

Speaking on the performance, Amitabh Chaudhry, MD & CEO, Axis Bank said, “With supportive regulatory conditions, the operative landscape is turning favourable. We believe large, well-capitalised banks like Axis with strong digital capabilities, innovative product suites are best suited to seize the opportunity.”