Axis Bank's Q2 profit plunges 26% to ₹5,090cr
What's the story
Axis Bank has reported a massive 26% year-on-year (YoY) decline in its standalone net profit for the second quarter. The bank's net profit stood at ₹5,090 crore, down from ₹6,918 crore in the same period last year. The fall comes despite a marginal increase of 2% in net interest income (NII) during the quarter to ₹13,744 crore.
Financial performance
Operating profit declines 3% YoY
Axis Bank's operating profit for the quarter also witnessed a 3% YoY decline, coming in at ₹10,413 crore. However, the bank did see a 10% YoY increase in fee income during this period to ₹6,037 crore. Retail fees contributed significantly to this growth, accounting for 71% of the bank's total fee income.
Risk management
Provisions jump by 61% YoY
Axis Bank's provisions and contingencies for Q2FY26 saw a massive 61% YoY jump to ₹3,547 crore. The bank's specific loan loss provisions for the quarter stood at ₹2,133 crore. As of September 2025, the bank had cumulative provisions (standard + additional other than NPA) of ₹13,262 crore with a standard asset coverage of 1.13%.
Asset performance
Asset quality improves in Q2
Despite the dip in profit, Axis Bank's asset quality improved in Q2. The bank's reported gross NPA and net NPA levels fell sequentially to 1.46% and 0.44%, respectively, from 1.57% and 0.45% as of June 2025. Recoveries from written-off accounts for the quarter stood at ₹641 crore while gross slippages were ₹5,696 crore compared to ₹4,443 crore in Q2FY25.
Financial expansion
Total deposits rise by 4% QoQ
Axis Bank's balance sheet grew by 11% YoY to ₹16.76 lakh crore as of September 2025, driven by steady growth in deposits and advances. The bank's total deposits rose by 4% quarter-on-quarter (QoQ) and 11% YoY on a month-end basis. Its loan book also grew by 12% YoY and 5% QoQ to ₹11.16 lakh crore with retail loans accounting for 57% of total advances.