Axis Bank Reports Marginal 0.64% YoY Decline in Q4 FY26 Net Profit at Rs 7,071 Crore

Axis Bank on Saturday reported a standalone net profit of Rs 7,071 crore in the March-ended quarter of FY26, versus Rs 7,118 crore in the year-ago period, implying a marginal drop of 0.64%. The private lender earned an interest income of Rs 32,724 crore in Q4FY26, which was up by 4.7% over Rs 31,243 crore posted by the company in the corresponding quarter of the previous financial year. The lender incurred interest expenses of Rs 18,267 crore in the quarter under review versus Rs 17,432 crore in Q4FY25, recording a 4.7% rise on a YoY basis. Its Board of Directors have recommended a dividend of Re 1 per share for the year ended March 31, 2026, subject to the approval of the members at the ensuing Annual General Meeting. The bank's Net Interest Income (NII) for Q4FY26 stood at Rs 14,457 crores, up 5% YOY, while the Net Interest Margin (NIM) for Q4FY26 stood at 3.62%. Axis Bank's operating profit for the quarter stood at Rs 10,013 crores while core operating profit stood at Rs 10,619 crores, the company filing said. Meanwhile, operating cost grew 6% YOY in Q4FY26. The company's profit after tax (PAT), though, jumped 9% sequentially compared to Rs 6,490 crore in Q3FY26. Provisions and contingencies for Q4FY26 stood at Rs 3,522 crores with specific loan loss provisions for Q4FY26 standing at Rs 1,146 crores. "Based on an assessment of evolving and unpredictable macroeconomic and geopolitical uncertainties, the Bank created an additional one-time provision of Rs 2,001 crores during the quarter. This approach is aligned with our practice to enhance resilience of our balance sheet during periods of elevated uncertainty while maintaining transparency and discipline in risk governance," a company statement said. As of March 31, 2026, the bank held cumulative provisions of Rs 15,473 crores. It is over and above the NPA provisioning included in our PCR calculations. These cumulative provisions translate to a standard asset coverage of 1.26% as on March 31, 2026. "On an aggregated basis, our provision coverage ratio stands at 166% of GNPA," the filing said. Credit cost on an annualised basis for the quarter stood at 0.37%. The Bank's balance sheet rose 17% YoY to Rs 18,86,850 crore as of March 31, 2026. Total deposits increased 6% QoQ and 14% YoY on a month-end basis. Within this, current account deposits grew 7% QoQ and 11% YoY, savings deposits rose 7% QoQ and 11% YoY, and term deposits expanded 5% QoQ and 16% YoY. The share of CASA deposits in total deposits stood at 40%, up from 39% at the end of Q3FY26. The Bank's advances grew 19% YoY and 6% QoQ to Rs 12,33,570 crores as on March 31, 2026. Retail loans grew 8% YoY to Rs 6,73,468 crores and accounted for 55% of the net advances of the bank. The share of secured retail loans was 73%, with home loans comprising 26% of the retail book. Small Business Banking (SBB) grew 7% QoQ and 17% YoY, while loan against property grew 16% YoY. Personal loans grew 2% QoQ and 6% YoY. Corporate loan book grew 10% QoQ and 38% YoY; domestic corporate book grew 36% YoY. The Bank's reported Gross NPA and Net NPA levels were 1.23% and 0.37%, respectively, as against 1.40% and 0.42% as on December 31, 2025. Recoveries from written off accounts for the quarter were Rs 1,197 crores. Gross slippages during the quarter were Rs 4,709 crores, compared to Rs 6,007 crores in Q3FY26 and Rs 4,805 crores in Q4FY25. Recoveries and upgrades from NPAs during the quarter were Rs 2,696 crores. The Bank in the quarter wrote off NPAs aggregating Rs 3,096 crores. MD & CEO Amitabh Chaudhry said the lender closed the year on a strong note, with consistent progress across all its strategic priorities. "While we enter the new financial year with confidence and optimism, focusing on building a more resilient franchise, we are conscious of the global macro and geo-political situation shaping up and are closely watching it," he added.