Shares of Axis Bank climbed over 2% in morning trade on Tuesday after the private sector lender reported its financial results for the third quarter ended December 2025. The market reaction came as the bank’s earnings surpassed Street expectations, supported by steady growth in core income and stable asset quality trends.
Axis Bank posted a net profit of ₹6,489.6 crore for the October–December quarter, marking a 3% year-on-year increase compared with ₹6,304 crore in the same period last year. The reported profit was higher than the CNBC-TV18 poll estimate of ₹6,046 crore, providing a positive cue for investors at the start of the trading session.
Net interest income, a key indicator of lending performance, rose 5% year-on-year to ₹14,286.4 crore from ₹13,606 crore in the corresponding quarter of the previous financial year. The NII figure also came in above market expectations of ₹14,089 crore, reflecting consistency in the bank’s core banking operations despite a competitive interest rate environment.
On the asset quality front, Axis Bank reported a sequential improvement in gross non-performing assets. Gross NPAs declined to 1.40% of advances in the December quarter, compared with 1.46% in the September quarter. Net NPAs also eased on a percentage basis to 0.42% from 0.44% quarter-on-quarter, indicating relative stability in stressed assets.
In absolute terms, gross NPAs fell to ₹17,166.8 crore from ₹17,307.7 crore in the previous quarter. Net NPAs, however, saw a marginal increase to ₹5,154.3 crore from ₹5,113.9 crore on a quarter-on-quarter basis, suggesting limited movement in residual stressed accounts.
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