Axis Bank Q2 Results: Net profit drops 26% yoy to £ 5,090 crore; Nii rises slightly by 2%

Axis Bank, India’s fourth largest money shooter in the private sector, reported a subdued financial performance for the September quarter, with the net profit weakening to £ 5,090 crore, a 26% drop of £ 6,918 in the same period last year, also among the consensus estimate of the analyst. Succession, the net profit fell 12.3% from £ 5,806 crore reported in the June term. Bank’s profit during the term was influenced by an additional one-time provision of assets of £ 1.231 crore for two terminated crop loan variants, after an RBI advice to the FY25 annual inspection. According to the bank’s regulatory filing, “this standard asset supply to the P&L will be written back when all outstanding loans are recovered or closed in the two terminated product variants in the normal course, or by 31 March 2028 (subject to any remaining outstanding loan accounts on the date), which is earlier.” The bank’s net interest income (NII), the difference between interest earned from lending activities and interest paid to depositors, was a £ 13,745 crore in Q2FY26, which was a modest 2% year to year increase from £ 13,483 in the same quarter last year. The bank’s net rent margin (NIM) was 3.73%, which was above the estimates of the analysts of 3.5%. On the front of asset quality, the bank performance remained stable on a quarter-to-quarter basis, but weakened compared to the same period last year. On September 30, 2025, the bank reported gross NPAs and net NPAs of 1.46% and 0.44% respectively, compared to 1.57% and 0.45% from 30 June 2025. Gross sliding during the quarter was £ 5.696 crore, lower than £ 8,200 crore in Q1FY26, but higher than £ 4.443 crore in Q2FY25. (More to come)