Axis Bank Announces Q1 FY26 Results: Strategic Growth, Resilience & Innovation

On July 18, 2025, Axis Bank shares are in focus after the leading private bank released its financial results for the quarter ended June 30, 2025. The quarter was marked by the Bank’s deepened commitment to innovation and digital transformation, supported by strategic partnerships and bold, industry-first initiatives.

Axis Bank Q1FY26 Performance

Axis Bank reported a strong operating profit of ₹11,515 crores for Q1 FY26, reflecting a 14% year-on-year (YoY) growth. The core operating profit stood at ₹10,095 crores, registering a 5% YoY increase. Operating costs rose modestly by 2% YoY, demonstrating efficient cost management amidst a challenging macro environment. Despite this, net profit declined by 4% YoY to ₹5,806 crores, impacted by higher provisions and a sharp rise in slippages during the quarter.

Net Interest Income & Margins

The Bank’s Net Interest Income (NII) grew by 1% YoY to ₹13,560 crores, supported by steady loan book growth. The Net Interest Margin (NIM) remained stable at 3.80% for the quarter, highlighting the Bank’s ability to maintain profitability despite market rate volatility and increasing competition in the lending space.

Strong Balance Sheet Expansion

Assets & Liabilities

As of 30th June 2025, Axis Bank’s balance sheet grew by 9% YoY to ₹16,03,308 crores. Total deposits also saw a 9% YoY increase on a month-end basis, with term deposits rising 12%, current account deposits up 9%, and savings account deposits growing by 3%. The CASA (Current Account Savings Account) ratio stood at 40%, underlining a healthy deposit mix. On a Quarterly Average Balance (QAB) basis, total deposits increased 8% YoY, with term deposits maintaining robust momentum at 12% YoY growth.

Advances and Loan Portfolio

The Bank’s total advances reached ₹10,59,724 crores, reflecting an 8% YoY and 2% QoQ growth. Retail loans accounted for 59% of the loan book at ₹6,22,960 crores, with ~72% of these secured. Home loans constituted 27% of the retail book. In specific segments, Small Business Banking grew 15% YoY, loan against property by 21%, personal loans by 5%, credit card advances by 2%, and rural lending by 5%. The SME loan portfolio, well-diversified across geographies and industries, stood at ₹1,20,872 crores, growing 16% YoY and 2% QoQ.

The corporate loan book rose 9% YoY, with domestic corporates seeing 11% growth. Notably, the mid-corporate segment surged 24% YoY and 15% QoQ. Nearly 90% of the corporate loan book is now rated A- and above, and 88% of new corporate sanctions during the quarter were to companies within this high-rated bracket.

Also Read: Route Mobile Q1FY26 Result: Revenue and PAT Down, Declared Interim Dividend of ₹3

Asset Quality & Risk Management

As of 30th June 2025, Axis Bank’s Gross NPA ratio stood at 1.57% and Net NPA at 0.45%, compared to 1.28% and 0.33% respectively at the end of March 2025. Recoveries from written-off accounts amounted to ₹904 crores during the quarter. Net slippages, after adjusting for these recoveries, totaled ₹5,149 crores. Of this, retail contributed ₹5,210 crores, CBG (Commercial Banking Group) added ₹86 crores, while the wholesale segment reported negative slippages of ₹147 crores, indicating net recoveries.

For investors tracking Axis Bank’s quarterly performance, holding shares through a Demat account ensures secure and seamless access to corporate actions like dividends and earnings updates.

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