Axis Bank reported its financial results for the first quarter ended June 30, 2025 (Q1 FY26), showing a marginal rise in core income but a decline in net profit year-on-year, with an increase in provisions and asset quality pressures sequentially.
For the quarter, the bank posted a net profit of ₹5,806 crore, down 4% from ₹6,034 crore in Q1 FY25 and lower than ₹7,117 crore in the previous quarter (Q4 FY25).
Key highlights:
- Net Interest Income (NII) or core income rose modestly by 0.8% YoY to ₹13,560 crore.
- Total income came in at ₹38,321 crore, compared to ₹35,844 crore in Q1 FY25.
- Provisions and contingencies rose sharply to ₹3,947 crore, up from ₹1,359 crore in Q4 and ₹2,039 crore in Q1 FY25.
- Gross NPA ratio stood at 1.57%, higher than 1.28% in Q4 FY25 but slightly above 1.54% a year ago.
- Net NPA ratio rose to 0.45%, compared to 0.23% in Q4 and 0.34% in Q1 FY25.
The rise in provisions during the quarter weighed on profits, while NII growth remained subdued. Asset quality indicators weakened sequentially, with higher gross and net NPAs versus the March quarter.
Despite the challenges, the bank continued to maintain profitability, supported by stable core operations and strong operating profit growth.
