Axis Bank reports 4 pc YoY decline in net profit in Q1, NII marginally up

New Delhi, July 17 (IANS) Axis Bank's standalone net profit for the quarter ending June 30, 2025 (Q1 FY26) came at Rs 5,806.14 crore, down nearly 4 per cent year-over-year (YoY) from Rs 6,034.64 crore during the same period in previous fiscal, the private sector lender said in an exchange filing on Thursday.

Net profit decreased by more than 18 per cent on a sequential basis from the Rs 7,117.50 crore recorded during the January–March quarter (Q4FY25).

The bank reported a slight increase in net interest income (NII), rising 0.83 per cent YoY to RS 13,559.75 crore from Rs 13,448.23 crore.

Following strong growth in non-interest income and efficient cost control, the bank's operating profit increased by a solid 14 per cent year over year to Rs 11,515 crore.

Meanwhile, non-interest income increased by 25 per cent year over year due to robust growth in fee income and treasury operations, the bank said.

At the same time, Axis Bank's net non-performing assets (NPA) increased by 28 per cent year over year to Rs 5,065 crore from Rs 3,552.98 crore the previous year.

With net NPA at 0.45 per cent and gross NPA at 1.57 per cent, there was a slight increase. The bank's capital adequacy ratio, however, stayed high at 16.85 per cent, suggesting a sound capital position.

With total advances increasing 8 per cent YoY to Rs 10.59 lakh crore from Rs 9.80 lakh crore, loan growth stayed consistent. Additionally, deposits increased by 9 per cent over the same time frame.

The amount of provision and contingencies for Q1FY26 was over Rs 3,948 crores. For Q1FY26, the specific loan loss provisions were Rs 3,900 crore.

At the end of Q1, the bank had a total of Rs 11,760 crore in provisions (standard + additional, excluding non-NPA), according to its filing.

Retail loans grew 6 per cent YOY to Rs 6,22,960 crore and accounted for 59 per cent of the net advances of the bank. The share of secured retail loans was 72 per cent, with home loans comprising 27 per cent of the retail book.

--IANS

aps/na