Axis Bank , India's third-largest private sector bank, has reported a steady performance for the second quarter of fiscal year 2026, with notable growth in advances and deposits. The bank's financial results, released on October 15, 2025, showcase its resilience in a dynamic economic environment.

Key Financial Highlights

• Net Interest Income (NII) grew 2% year-over-year (YoY) to ₹13,745.00 crores
• Operating profit stood at ₹10,413.00 crores, down 3% YoY
• Net profit decreased 26% YoY to ₹5,090.00 crores
• Advances grew 12% YoY to ₹11,16,703.00 crores
• Deposits increased 11% YoY to ₹12,03,487.00 crores

Asset Quality and Capital Adequacy

Axis Bank maintained a stable asset quality profile:

• Gross Non-Performing Assets (GNPA) ratio at 1.46%, up 2 basis points YoY
• Net Non-Performing Assets (NNPA) ratio at 0.44%, up 10 basis points YoY
• Provision Coverage Ratio (PCR) at 70%

The bank's capital position remained strong:

• Capital Adequacy Ratio (CAR) at 16.55%
• CET1 ratio improved to 14.43%, up 31 basis points YoY

Business Growth and Digital Initiatives

Axis Bank continued to focus on expanding its retail and commercial banking segments:

• Retail loans grew 6% YoY, accounting for 57% of net advances
• SME loans increased 19% YoY
• Corporate loans rose 20% YoY

The bank made significant strides in its digital banking initiatives:

• Maintained market leadership in UPI Payer PSP space with ~37% market share
• Crossed 15 million credit cards in force, with ~14% market share
• Mobile banking app rated 4.7 on Google Play Store with ~15 million monthly active users

Management Commentary

Amitabh Chaudhry, MD & CEO of Axis Bank, stated, "This quarter, we continued to push ourselves as an institution to deliver meaningful progress. From enhancing digital safety to expanding access to credit and empowering entrepreneurs, our innovations are designed to serve real needs with precision and scale. We believe true transformation is not just about technology, it's about relevance, strength, and responsibility."

Additional Developments

The bank launched several innovative products and services during the quarter:

• Introduced 'Lock FD' feature for digital blocking of premature fixed deposit withdrawals
• Launched India's first gold-backed credit line on UPI for MSMEs and self-employed entrepreneurs
• Implemented an all-in-one soundbox for small merchants, accepting multiple payment modes

Axis Bank also focused on corporate social responsibility and employee engagement:

• Hosted Sparsh Week across 5,965 branches with over 100,000 employees
• Released 'Pink Capital', a report on LGBTQIA+ financial lives
• Partnered with Antara Psychiatric Hospital to establish a Health Sciences Institute in Kolkata

Outlook

While Axis Bank faced some challenges in profitability this quarter, its strong growth in advances and deposits, coupled with its focus on digital innovation and customer-centric initiatives, positions it well for future growth. The bank's continued investments in technology and its expanding retail and commercial banking segments suggest a positive outlook for the coming quarters.

Investors and analysts will be watching closely to see how Axis Bank navigates the evolving economic landscape and capitalizes on its digital strengths to drive sustainable growth and profitability.

Axis Bank , one of India's leading private sector banks, reported a 26% year-over-year decline in net profit for the second quarter, despite a modest increase in revenue. The bank's financial results, while showing some positive trends in asset quality, highlight the challenges faced in the current economic environment.

Key Financial Highlights

Profit Decline and Revenue Growth

Axis Bank's net profit for Q2 FY2024 stood at ₹5,089.6 crore, falling short of market expectations of ₹5,692 crore. This represents a significant 26.43% decrease from ₹6,917.6 crore reported in the same quarter last year. Despite the profit decline, the bank managed to increase its revenue by 1.22% year-over-year, reaching ₹37,594.8 crore.

Expense Management and Interest Income

The bank's expenses saw an increase of 15.45% compared to the same quarter last year, rising to ₹13,503.6 crore. This surge in expenses contributed to the pressure on profitability. However, Axis Bank's net interest income, which is the difference between interest earned and interest expended, showed a slight improvement. The interest earned increased by 1.71% to ₹17,225.7 crore compared to the previous year.

Asset Quality Improvement

On a positive note, Axis Bank reported an improvement in its asset quality metrics:

• Gross Non-Performing Assets (GNPA) ratio decreased to 1.46% from 1.57% in the previous quarter.
• Net Non-Performing Assets (NNPA) ratio slightly improved to 0.44% from 0.45% quarter-over-quarter.

This improvement in asset quality suggests that the bank's risk management strategies and recovery efforts are yielding results, even in a challenging economic environment.

Operating Performance

The bank's operating profit for Q2 FY2024 was ₹17,466.6 crore, showing a marginal decline of 6.71% compared to the same period last year. The Operating Profit Margin (OPM) stood at 56.40%, down from 61.55% in Q2 FY2023, indicating some pressure on operational efficiency.

Outlook

While Axis Bank faces challenges in maintaining profit growth, the improvement in asset quality and the slight increase in revenue provide some positive signals. The bank's ability to manage expenses and capitalize on growth opportunities in the coming quarters will be crucial for its performance.

Investors and analysts will be closely watching how Axis Bank navigates the current economic landscape, balances its growth initiatives, and maintains asset quality in the subsequent quarters.