On Thursday, Axis Bank said that its June quarter net profit had decreased by 3.8 percent to Rs 5,806.14 crore from Rs 6,034.64 crore in the same period last year. Net profit decreased by 18 percent on a sequential basis.
The bank's operating profit for the quarter was Rs 11,515 crore, up 14% over the previous year. According to a press statement, core operating profit increased 5% year over year to Rs 10,095 crore. In Q1FY26, operating costs increased by 2% year over year.
Compared to the Rs 13,448 recorded in the previous quarter, the net interest income (NII) increased slightly by 0.8 percent to Rs 13,560 crore in the current quarter. Net interest income decreased by 2% sequentially.
The bank's Net Interest Margin (NIM) was 3.80% in the April–June quarter, compared to 3.97 percent in the previous quarter and 4.05 percent in the previous year. The gross non-performing asset (NPA) ratio increased from 1.28 percent on March 31, 2025, and 1.54 percent on June 30, 2024, to 1.57 percent on June 30, 2025, indicating a decline in the bank's asset quality during the reporting quarter.
According to the investor presentation, the bank's net non-performing asset (NPA) ratio also rose from 0.33 percent in Q4FY25 and 0.34 percent in Q1FY25 to 0.45 percent in Q1FY26.
In the April-June quarter, the bank's gross non-performing assets (NPA) totaled Rs 17,765 crore, up from Rs 14,490 crore in the previous quarter and Rs 16,211 crore in the previous year. In the reporting quarter, net non-performing assets (NPA) were Rs 5,066 crore, down from Rs 3,685 crore in the previous quarter and Rs 3,553 crore in the previous year.
In the June quarter of the fiscal year 2026, the third-largest private sector lender in the nation declared provisions of Rs 3,948 crore, up from Rs 1,359 crore in the March quarter. The overall deposits increased by 9% year over year to 11.61 lakh crore, including 9% growth in current account deposits, 3% growth in savings account deposits, and 12% growth in term deposits. At the conclusion of Q1FY26, CASA deposits accounted for 40% of total deposits.
Total deposits increased 8% year over year on a quarterly average balance basis, with savings account deposits increasing 1%, current account deposits increasing 4%, and term deposits increasing 12%. As of June 30, 2025, the Bank's advances increased by 8% year-over-year and 2% quarter-over-quarter to Rs 10.59 lakh billion. Retail loans made up 59% of the Bank's net advances and increased 6% year over year to Rs 6.23 lakh crore crore.
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