Axis Bank Q2 Results: Net Profit Drops 26% YoY To Rs 5,090 Cr Despite 11% Deposit Growth; Steady NII

On Wednesday, October 15, Axis Bank announced its financial results for the quarter and a half that ended on September 30, 2025. The bank's operating profit for the quarter amounted to Rs 10,413 crores down 3% YOY and core operating profit remained at Rs 9,915 crores. In Q2FY26, net profit dropped 26% YoY to Rs 5,090 crores from Rs 6,918 Cr in Q2FY25.

The bank's Net Interest Margin (NIM) for Q2FY26 was 3.73%, while its Net Interest Income (NII) was Rs 13,745 crores, up 1% on a QOQ and 2% on a year-on-year basis. Concerning the half-year that ended on September 30, 2025, Axis Bank's Net Interest Income for H1FY26 increased by 1% to Rs 27,304 crores.

At Rs 11,783 crores, fee income increased 10% YoY. From Rs 20,819 crores in H1FY25 to Rs 21,928 crores in H1FY26, operating profit increased by 5%. From Rs 19,238 crores in H1FY25 to Rs 20,010 crores in H1FY26, the core operating profit went up by 4%. For H1FY26, the total value of provisions was Rs 7,495 crores. H1FY26's net profit was Rs 10,896 crores, a 16% YoY drop.

As of September 30, 2025, the bank's balance sheet was at Rs 16,76,614 crores, an 11% YoY growth. On a month-end basis, total deposits climbed 4% QOQ and 11% YOY; on a QOQ | YOY basis, current account deposits climbed 13% YOY, savings account deposits climbed 4% | 6%, and term deposits expanded 4% | 12%. CASA deposits accounted for 40% of all deposits. Overall deposits increased 3% QOQ and 10% YOY on a QAB basis, with savings account deposits climbing 3% | 4%, current account deposits jumping 2% | 7%, and term deposits gaining 4% | 13% on a QOQ | YOY basis.

Amitabh Chaudhry, MD&CEO, Axis Bank said, "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. As we move forward, our focus remains on building a bank that is agile, inclusive, and an all-weather franchise. One that leads with purpose in a rapidly evolving world."

As of September 30, 2025, the bank's advances had increased 12% YoY and 5% QoQ to Rs 11,16,703 crores. Retail loans, which made up 57% of the bank's net advances, increased 2% QOQ and 6% YOY to Rs 6,35,460 crores.

The bank's reported Gross Non-Performing Asset (NPA) and Net Non-Performing Asset (NPA) levels as of September 30, 2025, were 1.46% and 0.44%, respectively, compared to 1.57% and 0.45% as of June 30, 2025. The quarter's written-off account recoveries totaled Rs 641 crores. Retail was Rs 2,095 crores, CBG was Rs 41 crores, and wholesale was Rs 31 crores of the reported net slippages for the quarter, which were adjusted for recovery from the written-off pool.

In comparison to Q1FY26's gross slippages of Rs 8,200 crores and Q2FY25's gross slippages of Rs 4,443 crores, the quarter's gross slippages came to Rs 5,696 crores. The bank's provision coverage as a percentage of gross non-performing assets (NPAs) was 70% as of September 30, 2025, compared to 71% on June 30, 2025, and 77% on September 30, 2024.

In comparison to 5,577 domestic branches and extension counters and 182 Business Correspondent Banking Outlets (BCBOs) spread across 3,062 centers as of September 30, 2024, the bank's total distribution network as of September 30, 2025, consists of 5,976 domestic branches and extension counters and 259 BCBOs spread across 3,238 centers. Axis Bank operated 13,177 ATMs and cash recyclers nationwide as of September 30, 2025. As of September 30, 2025, the bank's Axis Virtual Center has 1,786 Virtual Relationship Managers spread over eight centers.