Axis Bank Q3 results: Net profit rises 3% to ₹6,490 cr, NII at ₹14,287 cr

Axis Bank, India’s third-largest private sector lender, on Monday reported a 3 per cent year-on-year (YoY) increase in net profit to Rs 6,490 crore in the October–December quarter (Q3FY26), due to subdued growth in net interest income, other income, and a marginal increase in loan loss provisions.

 

Its net interest income (NII) was up 5 per cent YoY in Q3 to Rs 14,287 crore, despite its net advances growing robustly at 14 per cent YoY during the quarter. Other income was up 4 per cent YoY to Rs 6,226 crore during the quarter, due to a significant fall in trading income.

 

 

The bank’s domestic net interest margin (NIM) was down 9 basis points (bps) in Q3 at 3.64 per cent over Q2.

 

It reported fresh slippages of Rs 6,007 crore in Q3, up 5.6 per cent YoY from the previous quarter, and 10.6 per cent from the same period last year. Slippages primarily were from the retail portfolio at Rs 5,472 crore. The bank also disclosed that gross slippages on account of technical impact in Q3 were Rs 1,698 crore, and net slippages on account of technical impact in Q3 were Rs 449 crore.

 

The bank said gross slippages for Q3 adjusted for technical impact were Rs 4,308 crore, and net slippages for the quarter adjusted for technical impact were Rs 2,685 crore.

 

The bank’s loan loss provisions for Q3 were Rs 2,307 crore, compared to Rs 2,133 crore in Q2, and Rs 2,185 crore in Q3FY25. Provisions on account of technical impact in Q3FY26 were Rs 377 crore.

 

Asset quality of the lender improved in the quarter, with gross non-performing assets (NPAs) at 1.40 per cent, down 6 per cent over the previous quarter. Net NPAs stood at 0.42 per cent. Gross NPA ratio adjusted for technical impact stands at 1.21 per cent. Net NPA ratio adjusted for technical impact stands at 0.33 per cent.

 

The bank’s net advances portfolio grew 14 per cent YoY to Rs 11.59 trillion, driven by growth in the corporate portfolio at 27 per cent YoY, followed by the SME portfolio at 22 per cent YoY. The retail portfolio of the bank grew modestly at 6 per cent YoY.

 

Deposits, on the other hand, grew 15 per cent YoY to Rs 12.60 trillion, with term deposits growing 16 per cent YoY to Rs 7.67 trillion. Current account deposits of the bank grew 20 per cent YoY to Rs 1.72 trillion, while savings account deposits grew 11 per cent YoY to Rs 3.21 trillion.

 

“Our progress this quarter reflects our focus on creating solutions that matter—simplifying access to credit, reimagining digital banking, and investing in talent and ideas that will shape the future. We will keep strengthening our competitive edge by modernising our platforms, empowering our teams, and staying ahead of shifts in customer behaviour through smart and revolutionary solutions,” said Amitabh Chaudhry, MD & CEO, Axis Bank.