Axis Bank Approves Q1 FY26 Results at Board Meeting in Mumbai

The Board of Directors of Axis Bank Limited approved the financial results for the quarter ended 30th June 2025 at its meeting held in Mumbai on Thursday, 17th July 2025.

This quarter, Axis Bank reinforced its commitment to innovation and strategic partnerships, launching industry-first initiatives and forging high-impact collaborations to redefine banking convenience, security, and inclusivity.

As a full suite cards & payments player, the Bank continued to build on innovation led partnership models to tap newer customer segments and their evolving needs. It partnered with Flipkart Group’s super.money and RuPay to launch a co-branded credit card targeted at UPI users, and an innovative wearable payments solution in partnership with boAt and Mastercard. The Bank also became the first to implement a pioneering B2B collections solution for a Fortune 500 company on NBBL’s Bharat Connect (erstwhile BBPS), leveraging its best-in-class corporate API banking stack. As a leader in Digital Banking, Axis Bank is committed to enhancing customer safety and reducing fraud incidents, and therefore has been heavily investing in building multiple layers of protection against cyber frauds. In an industry-first, it has introduced the 'In-App Mobile OTP' feature, which generates OTPs within the Axis Bank’s mobile app, eliminating the need for SMS and thereby significantly reducing fraud risks.

On the social impact front, Axis Bank proudly partnered with the Indian Army and CSC-e-Governance for supporting project NAMAN, a dedicated initiative for Army veterans and their families. Under Axis Bank’s Silver Lining Program, the Bank joined hands with Antara Senior Care to enrich the lives of 20+ lakh senior citizens through tailored healthcare solutions. In line with the Bank’s commitment towards strengthening India’ sports ecosystem, it signed an MOU with Lakshya Shooting club to establish a state-of-the-art sports centre in Navi Mumbai.

Some key awards conferred on Axis Bank this quarter include CNBC-TV18 India Risk Management Award for Enterprise Risk Management, Infosys Finacle Innovation Award for Maximizing Customer Engagement, Business Model Innovation and Modern Technology Led Innovation, FT-PWM Wealth Tech Award for Best CRM in Private Banking in Asia and MENA Banking Excellence Award for Trade Finance Bank of the Year (DIFC Branch). Axis Bank was also honoured with the ‘Rotary CSR Award 2025 for Community Involvement’ for its transformative education program in Nagaland.

Amitabh Chaudhry, MD&CEO, Axis Bank said, “We are optimistic as we step into FY26. With supportive regulatory conditions, the operative landscape is turning favourable. We believe large, well-capitalised banks like Axis with strong digital capabilities, innovative product suites are best suited to seize the opportunity. At Axis, we have built a robust Digital Bank along with an extensive branch network that ensures smart, seamless banking experience for millions of customers. We believe we have built a platform that allows us to grow at rates faster than the industry this year and this thesis will continue to play in the medium term.”

Q1FY26 Performance at a Glance

Operating performance aided by higher non-interest income and effective cost control

o   Net Interest Income up 1% YOY and down 2% QOQ, Net Interest Margin (NIM) at 3.80%

o   Non-interest income up 25% YOY, Fee income up 10%, Retail fee up 9%, granular fees at 91% of total fees

o   Cost to assets at 2.41% declined 13 bps YOY and 5 bps QOQ

Focus on average deposits continue, MEB deposit growth remains steady

o   YOY MEB1 | QAB1, total deposits up 9% | 8%; term deposits up 12% | 12%, CA up 9% | 4%, SA up 3% | 1%

o   MEB1 | QAB1 CASA ratio at 40% | 38%, respectively

o   Average LCR2 during Q1FY26 was ~119%, outflow rates improved ~150 bps over the last one year

o   Cost of funds declined 5 bps YOY and 11 bps QoQ

SBB+SME+MC growth remains healthy

o   SBB+SME+MC mix at ₹2,472 bn | 23% of total loans, up ~820 bps in last 4 years

o   Advances grew 8% YOY and 2% QOQ; Bank’s focus segments* grew by 11% YOY and 1% QOQ

o   SME Loans up 16% | 2%, Corporate loans up 9% | 6%, Mid-Corporate (MC) up 24% | 15%, on YOY | QOQ basis

o   SBB book grew 15% YOY and 1% QOQ, Retail loans grew 6% YOY of which Rural loans grew 5% YOY

Well capitalized with self-sustaining capital structure; adequate liquidity buffers

o   Overall capital adequacy ratio (CAR) stood at 16.85%, CET 1 ratio of 14.68%, up 62 bps YOY

o   Additional cushion of ~36 bps over the reported CAR, attributable to other provisions^ of ₹5,012 crores

o   Excess SLR of ₹96,608 crores

Continue to maintain our strong position in Payments and Digital Banking

o   open by Axis Bank remains among the world’s top rated3 MB app on Google Play store and iOS app store with a rating of 4.7 and 4.8 respectively; ~15 mn MAU4

o   ~0.79 million credit cards acquired in Q1FY26, CIF market share of ~14%

Asset quality trend attributable to Technical Impact (see slide 44 of Q1FY26 investor presentation)

o   GNPA% at 1.57% up 3 bps YOY and 29 bps QOQ, NNPA% at 0.45% up 11 bps YOY and 12 bps QOQ

o   PCR healthy at 71%; On an aggregated basis5, Coverage ratio at 138%

o   Gross slippage ratio6 at 3.13%, Net slippage ratio6 at 2.33%, Net credit cost6 at 1.38%

o   Provisions to average assets ratio6 at 1% up 65 bps QOQ

Key domestic subsidiaries7 delivered steady performance

o   Q1FY26 total profit at `451 crores up 4% YOY, with a return on investment in domestic subsidiaries of 47%

o   Axis Finance Q1FY26 PAT grew 23% YOY to `189 crores; asset quality metrics stable, ROE at 13.98%

o   Axis AMC Q1FY26 PAT grew 12%YOY to `130 crores

o   Axis Securities customer base grew 15% YOY and Q1FY26 PAT stood at `89 crores

o   Axis Capital Q1FY26 PAT stood at `38 crores and executed 6 ECM deals in Q1FY26

Profit & Loss Account: Period ended 30th June 2025

Operating Profit and Net Profit

The Bank’s operating profit for the quarter grew 14% YOY to `11,515 crores. Core operating profit grew 5% YOY to `10,095 crores. Operating cost grew 2% YOY in Q1FY26. Net profit de-grew 4% YOY to `5,806 crores in Q1FY26.

Net Interest Income and Net Interest Margin

The Bank’s Net Interest Income (NII) up 1% YOY to `13,560 crores. Net Interest Margin (NIM) for Q1FY26 stood at 3.80%.

Other Income

Fee income for Q1FY26 grew 10% YOY to `5,746 crores. Retail fees grew 9% YOY; and constituted 70% of the Bank’s total fee income. Fees from Third Party Products grew 30% YOY. The Corporate & Commercial banking fees together grew 13% YOY to `1,695 crores. The trading income gain for the quarter stood at `1,420 crores; miscellaneous income in Q1FY26 stood at `92 crores. Overall, non-interest income (comprising of fee, trading and miscellaneous income) for Q1FY26 grew 25% YOY and 7% QOQ to `7,258 crores.

Provisions and contingencies

Provision and contingencies for Q1FY26 stood at `3,948 crores. Specific loan loss provisions for Q1FY26 stood at `3,900 crores. The Bank holds cumulative provisions (standard + additional other than NPA) of `11,760 crores at the end of Q1FY26. It is pertinent to note that this is over and above the NPA provisioning included in our PCR calculations. These cumulative provisions translate to a standard asset coverage of 1.12% as on 30th June 2025. On an aggregated basis, our provision coverage ratio (including specific + standard + additional) stands at 138% of GNPA as on 30th June 2025. Credit cost (annualized) for the quarter ended 30th June 2025 stood at 1.38%.

The prudent application of technical parameters for recognizing slippages and consequent upgrades impacted reported asset quality parameters including provisions and contingencies for the quarter ended June 30, 2025 (“Technical Impact”). Technical Impact is largely restricted to cash credit and overdraft products and one time settled accounts.

`821 crores of provisions and contingencies debited to the Profit and Loss Account is attributable to Technical Impact. Provisions and contingencies adjusted for Technical Impact is `3,127 crores.

Balance Sheet: As on 30th June 2025

The Bank’s balance sheet grew 9% YOY and stood at `16,03,308 crores as on 30th June 2025. The total deposits grew 9% YOY on month end basis, of which current account deposits grew 9%, saving account deposits grew 3% and term deposits grew 12% YOY basis, respectively. The share of CASA deposits in total deposits stood at 40% at the end of Q1FY26. On QAB basis, total deposits grew 8% YOY, within which savings account deposits grew 1% YOY, current account deposits grew 4% and term deposits grew 12% YOY basis, respectively.

The Bank’s advances grew 8% YOY and 2% QOQ to `10,59,724 crores as on 30th June 2025. Retail loans grew 6% YOY to `6,22,960 crores and accounted for 59% of the net a dvances of the Bank. The share of secured retail loans$ was ~72%,

with home loans comprising 27% of the retail book. Small Business Banking (SBB) grew 15% YOY, Loan against property grew 21% YOY, Personal loans grew 5% YOY, Credit card advances grew 2% YOY and Rural loan portfolio grew 5% YOY. SME book remains well diversified across geographies and sectors, grew 16% YOY and 2% QOQ to `1,20,872 crores. Corporate loan book grew 9% YOY; domestic corporate book grew 11% YOY. Mid-corporate book grew 24% YOY and 15% QOQ. ~90% of corporate book is now rated A- and above with 88% of incremental sanctions in Q1FY26 being to corporates rated A- and above.