Axis Bank reported a 23% year-on-year increase in standalone net profit to ₹7,114 crore for the quarter ended June 30, 2026. The profit growth was supported by a rise in total income to ₹40,721 crore and a decline in provisions and contingencies to ₹2,223 crore. The bank's asset quality improved, with Net NPAs decreasing to 0.39% compared to 0.45% in the same quarter of the previous year. Deposits grew 18% YoY, while advances increased 19% YoY, with the bank maintaining its position as the third-largest private sector bank in India.

Financial Performance

The bank's net interest income rose 8% YoY to ₹14,646 crore, while other income stood at ₹6,735 crore. Operating profit for the quarter was recorded at ₹11,659 crore. Provisions and contingencies (excluding tax) were significantly lower at ₹2,223 crore compared to ₹3,948 crore in the corresponding quarter of the previous year. The bank's Net Interest Margin (NIM) stood at 3.46% for the quarter.

Asset Quality and Ratios

Asset quality metrics showed improvement during the quarter. Gross NPAs stood at 1.28%, down from 1.57% in Q1FY26. Net NPAs improved to 0.39% from 0.45% a year ago. The Capital Adequacy Ratio (Basel III) was reported at 16.67% as of June 30, 2026. The bank's Return on Assets (annualized) was 1.51%.

Segmental Performance

Retail Banking continued to be a major revenue driver, contributing significantly to the segment results. Digital Banking, a sub-segment of Retail Banking, reported revenue of ₹10,627 crore. The Corporate/Wholesale Banking segment and Treasury segment also posted positive results for the quarter. The bank maintained a market share of ~38% in the UPI Payer PSP space and ~13.4% in credit cards in force.

Key Developments

During the quarter, the bank infused equity capital of ₹1,499.26 crores in Axis Finance Limited and invested ₹380.60 crores in Axis Max Life Insurance Limited. Additionally, Axis Finance Limited issued and allotted fresh equity shares on a preferential basis to Kedaara Pearl Holding and Kedaara Capital Fund IV AIF for a total cash consideration of ₹750 crores, diluting the bank's stake to 94.92%.

Consolidated Results

On a consolidated basis, the bank reported a net profit of ₹7,632.31 crore for the quarter ended June 30, 2026, compared to ₹6,243.72 crore in the same period last year. Total consolidated income stood at ₹43,212.82 crore.

The unaudited financial results were approved by the Board of Directors at its meeting held on July 18, 2026. The results were subjected to a limited review by the joint statutory auditors, M M Nissim & Co LLP and KKC & Associates LLP.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE238A01034/b12613e8-d55e-46e9-bc0b-27c95408d9dc.pdf

Axis Bank has received final listing approval for US$100,000,000 Additional Tier 1 Notes carrying a coupon rate of 6.875% per annum. The notes are listed on the Global Securities Market of the India International Exchange (IFSC) Limited and the Debt Securities Market of the NSE IFSC Limited. This issuance strengthens the bank's capital base and will be consolidated with the US$500,000,000 6.875% Additional Tier 1 Notes issued on June 30, 2026, bringing the total aggregate for the series to US$600,000,000.

The allotment was completed on July 14, 2026, in accordance with applicable laws and regulatory requirements. The bank disclosed this development under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. These perpetual instruments are unsecured and rank junior to the bank's Senior Notes.

Key Details of the Additional Issuance

The bank had previously allotted US$300,000,000 Senior Notes, categorized as Series 10, on June 30, 2026. These notes have a tenor of five years maturing on June 30, 2031, and offer a coupon of 5.348% per annum. The Additional Tier 1 Notes rank junior to these Senior Notes. The notes are not being offered or sold to persons resident in India or the United States.