Axis Bank’s interest income increased
Axis Bank reported a net profit of Rs 7,071 crore for the fourth quarter ended March 31, 2026, showing a marginal year-on-year decline of 0.6% from Rs 7,117 crore, on the back of a surge in standard-asset provisioning as a prudential measure and a steady rise in core interest income offset by a decline in trading profits.Net interest income grew 5% year-on-year to Rs 14,457 crore, supported by 19% growth in net advances, which stood at Rs 12,33,570 crore. Loan growth was led by a 38% increase in corporate loans and a 24% increase in SME advances. Interest expense increased by 5% to Rs 18,267 crore. Total deposits grew 14% to Rs 13,35,834 crore, helped by a stable current and savings account (CASA) ratio of 40%, which led to a 44 basis point reduction in cost of funds.Provisions other than taxes increased 159% year-on-year to Rs 3,522 crore. The increase was driven by a voluntary decision to strengthen the provisioning framework, which included a one-time provision of Rs 2,001 crore for standard assets during the quarter. Loan loss provisions declined to Rs 1,146 crore from Rs 1,369 crore a year ago. Net profit after tax credit of Rs 580 crore was Rs 7,071 crore.Non-interest income due to trading loss stood at Rs 6,023 crore, down 11% year-on-year. Core fee income rose 4% to Rs 6,561 crore. Granular fees contributed 92% of the total, while retail fees contributed 74% of the total fee pool. Total operating revenue for the quarter stood at Rs 20,480 crore.Operating profit declined 7% year-on-year to Rs 10,013 crore as operating expenses rose 6% to Rs 10,466 crore. Staff costs increased by 5%, while non-employee overheads increased by 7%. The cost-to-asset ratio declined 18 basis points from a year earlier to 2.28%.Asset quality improved, with the gross non-performing asset ratio falling to 1.23% from 1.28% a year ago. The net non-performing assets ratio stood at 0.37%. The provision coverage ratio was 70%. Capital adequacy remained strong, with total capital adequacy ratio at 16.42% and CET1 ratio at 14.38%.
