Axis Bank's Q1 profit dips on technical NPA reclassification
Axis Bank just posted a 4% drop in net profit for April-June FY26, landing at ₹5,806 crore.
The main reason? A one-time "technical" move where some loans were reclassified as non-performing assets (NPAs), which bumped up the bank's provisions by ₹3,948 crore, with ₹821 crore of this increase attributed to the technical reclassification.
Most reclassified loans are fully secured, says Axis
Even with this hiccup, Axis Bank's core business stayed strong—operating profit jumped 14% to ₹11,515 crore and net interest income edged up to ₹13,560 crore.
The bank says most of the reclassified loans are fully secured.
Asset quality held steady with gross NPAs at 1.41%, and the balance sheet grew 9% year-on-year to ₹16.03 lakh crore.
Overall, Axis still looks financially solid despite this technical speed bump.