Private lender Axis Bank has reported a 4% fall in its standalone net profit at Rs 5,806 crore in the first quarter of FY26.
The same stood at Rs 6,035 crore in the year-ago period.The net interest income for the reporting period was flat at Rs 13,560 crore.Operating profit (before provisions and contingencies) grew 14% YoY to Rs 11,515 crore from Rs 10,106 crore in the same period last year.
However, provisions nearly doubled YoY, rising to Rs 3,948 crore in Q1FY26 from Rs 2,039 crore in Q1FY25.The Bank holds cumulative provisions (standard + additional other than NPA) of Rs 11,760 crores at the end of Q1FY26.
It is pertinent to note that this is over and above the NPA provisioning included in PCR calculations.
These cumulative provisions translate to a standard asset coverage of 1.12% as on 30 June 2025.On an aggregated basis, the Bank's provision coverage ratio (including specific + standard + additional) stands at 138% of GNPA as on June 30.
Credit cost (annualized) for the quarter stood at 1.38%.Live EventsETMarkets.comThe prudent application of technical parameters for recognizing slippages and consequent upgrades impacted reported asset quality parameters including provisions and contingencies for the quarter, the Bank said.Technical impact is largely restricted to cash credit and overdraft products and one time settled accounts.
Rs 821 crore of provisions and contingencies debited to the profit and loss account is attributable to technical impact.The net interest margin (NIM) for the first quarter stood at 3.8%.Fee income for Q1FY26 rose 10% YOY to Rs 5,746 crore.
Retail fee rose 9% YoY and constituted 70% of the Banks total fee income.
Fee from Third Party Products jumped 30% YoY.
The corporate and commercial banking fee together grew 13% YoY to Rs 1,695 crore.
The trading income gain for the quarter stood at Rs 1,420 crore, while miscellaneous income was at Rs 92 crore.
Overall, non-interest income (comprising of fee, trading and miscellaneous income) for Q1FY26 grew 25% YoY to Rs 7,258 crore.Axis Banks balance sheet grew 9% year-on-year (YoY) to Rs 16.03 lakh crore as on June 30, 2025.
Total deposits also rose 9% YoY, with current account deposits up 9%, savings account deposits up 3%, and term deposits up 12% on a month-end basis.
The CASA ratio stood at 40% at the end of the quarter.On a quarterly average basis (QAB), total deposits rose 8% YoY, led by 1% growth in savings accounts, 4% growth in current accounts, and 12% growth in term deposits.The banks advances increased 8% YoY and 2% QoQ to Rs 10.60 lakh crore.
Within this, retail loans grew 6% YoY to Rs 6.23 lakh crore, forming 59% of total net advances.
Of the retail book, around 72% was secured.On Friday, Axis Bank shares closed 0.6% lower at Rs 1,161 on NSE.