Axis Bank reported a marginal 0.65% year-on-year decline in standalone net profit at ₹7,071 crore for Q4 FY26, compared to ₹7,117.5 crore in the same quarter last fiscal owing to higher provisioning. The slight dip in profitability comes even as the bank maintained stable core operating performance.
NII growth and margins remain resilient
Net Interest Income (NII) for the quarter grew 5% YoY, supported by a Net Interest Margin (NIM) of 3.62%. Total income stood at ₹38,746 crore, reflecting steady business momentum across lending and deposit franchises.
Asset quality strengthens further
Asset quality continued to improve, with Gross Non-Performing Assets (GNPA) declining to 1.23%. Core asset quality metrics remained stable and within the bank’s internal risk thresholds, indicating a healthy loan book.
Higher provisions impact bottom line
Total provisions for the quarter stood at ₹3,522 crore. Notably, the bank created an additional one-time provision of ₹2,001 crore as a precautionary measure, factoring in evolving global macroeconomic and geopolitical uncertainties. The bank clarified that this move is prudential in nature and does not indicate any deterioration in asset quality or adverse credit trends.
Costs inch up, capital remains strong
Operating expenses rose 6% YoY, in line with ongoing investments in growth and digital capabilities. Capital adequacy remained robust, with the Capital Adequacy Ratio (CAR) at 16.42% and CET-1 ratio at 14.38%, providing a comfortable buffer for future expansion.
Digital and payments franchise scales up
Axis Bank continued to strengthen its digital ecosystem, with its mobile banking platform maintaining a 4.8 rating across app stores and recording 16 million monthly active users. The bank also retained a strong position in the merchant acquiring business, with a terminal market share of 22.4%.
Strategic partnerships drive growth
During the quarter, the bank expanded into new consumption and mobility segments through key partnerships. It became the preferred financier for Tesla in India and partnered with IndiGo to launch co-branded credit cards, strengthening its presence in the travel and lifestyle segments.
Digital growth
Amitabh Chaudhry, MD & CEO of Axis Bank, said the bank continues to focus on trust, security, and relevance as banking becomes increasingly digital. He noted that the bank closed the year with consistent progress across strategic priorities and enters the new financial year with confidence, while remaining watchful of global macroeconomic and geopolitical developments.
Dividend announced
The board recommended a dividend of ₹1 per equity share for FY26, subject to shareholder approval.