Axis Bank PAT Up 3% on Year to ₹64.9 Billion as NIM Weakens Further

Axis Bank today reported a standalone net profit of ₹64.9 billion for the quarter ended December 31, an increase of just 3% from the corresponding quarter of the previous financial year.  The bank's total income for the quarter stood at ₹385.0 billion, up from ₹369.3 billion.

The interest earned for the quarter totalled ₹322.7 billion, and the bank expended ₹179.9 billion in interest during the reporting period. Operating expenses for the quarter stood at ₹96.4 billion, with employee costs accounting for ₹27.7 billion and other operating expenses at ₹68.6 billion.

The bank’s net interest income for October–December stood at ₹142.87 billion up 4% on quarter and 5% on year basis. Net interest margin for the quarter stood at 3.64% as against 3.73% in the previous quarter and 3.93% a year ago.

The bank charged ₹254.4 million to its Profit and Loss Account for October–December towards gratuity, primarily due to changes in wage definitions due to the new labour codes. The cumulative provision held by the bank towards these codes as of December 31, stands at ₹4.3 billion.

The Bank’s advances grew 14% on year and 4% on quarter to ₹11.59 trillion as on December 31. Retail loans grew 6% on year to ₹6.45 trillion and accounted for 56% of the net advances of the Bank.

The operating profit before provisions and contingencies stood at ₹108.8 billion for the quarter, up 3% on year. Provisions (other than tax) and contingencies reached ₹22.5 billion, compared to ₹21.6 billion in the corresponding quarter of the previous year.

The gross non-performing assets stood at ₹171.7 billion as of Dec 31, 2025, compared to ₹158.5 billion a year ago. In percentage terms, the Gross NPA ratio improved to 1.40% from 1.46% in the corresponding previous quarter. 

The net non-performing assets stood at ₹51.5 billion, translating to a Net NPA ratio of 0.42%. The Capital Adequacy Ratio under the Basel III framework was 16.55%, compared to 17.01% in the year-ago period.

On a consolidated basis, the Axis Bank Group reported a net profit of ₹70.1 billion for the quarter ended December 31. The consolidated total income for the group was ₹409.0 billion, and total consolidated assets stood at ₹18.1 trillion.

The consolidated financial statement incorporated results from subsidiaries including Axis Capital Limited, Axis Trustee Services Limited, Axis Mutual Fund Trustee Limited, Axis Asset Management Company Limited, Axis Finance Limited, Axis Securities Limited, Freecharge Payment Technologies Private Limited, A. Treds Limited, Freecharge Business and Technology Services Limited, Axis UK Limited, Axis Capital USA LLC, and Axis Pension Fund Management Limited. It also included the associate company Axis Max Life Insurance Limited.