Axis Bank Q4 results: Net profit up 1.89% to Rs 7,631.72 crore, sets aside Rs 2,001 crore provision

Axis Bank reported a marginal rise in consolidated profit for the March quarter. Consolidated net profit increased 1.89 per cent to Rs 7,631.72 crore. The lender also set aside Rs 2,001 crore for possible stress linked to the West Asia war. The provision was booked despite no stated weakening in the loan book.

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On a standalone basis, net profit for the March quarter slipped to Rs 7,071.31 crore. It was Rs 7,117.50 crore a year earlier. Profit was Rs 6,489.57 crore in the December quarter. The bank also reported a one-time tax gain of Rs 2,193 crore. It included reversals and deferred tax recognition.

Axis Bank March quarter numbers: income, margin and provisions

Net interest income rose 5 per cent to Rs 14,457 crore during the quarter. Advances grew 19 per cent over the same period. Net interest margin fell by 0.35 per cent to 3.62 per cent. Other income stood at Rs 6,023 crore. It declined 11 per cent year-on-year.

The bank made a standard asset provision of Rs 2,001 crore for the conflict impact. Chief financial officer Puneet Sharma called it as "a prudential, precautionary measure which is not driven by any deterioration in the assets\". Chief executive and managing director Amitabh Chaudhry said its conservatism is a strategic advantage.

Sharma said the bank ran risk checks across the full portfolio. Axis Bank identified a pool of assets seen as most exposed. Sharma did not share the count, outstanding amount, segments, or sectors. Sharma said the buffer can cover FY27 provisions under stress. The scenario included USD 150 crude and 20 per cent currency depreciation.

Total provisions rose sharply to Rs 3,522 crore in the quarter. It compared with Rs 1,359 crore in the year-ago period. The bank said the extra provisioning was linked to prudence. It was not attributed to fresh asset stress. The additional provision lifted the overall provision expense.

Axis Bank asset quality: slippages and NPA ratio

Gross slippages fell to Rs 4,709 crore during the quarter. It was Rs 6,805 crore in the year-ago period. Slippages were Rs 6,007 crore in the March quarter stated in the results. The gross non-performing assets ratio improved to 1.23 per cent. It was 1.4 per cent in December.

Axis Bank loan growth: wholesale versus retail trends

Wholesale advances drove the overall loan expansion. Wholesale lending grew 38 per cent during the period. Retail advances rose 8 per cent. A senior official said retail disbursements were improving. The official said it may take a few quarters to reflect in book growth. Sharma said the bank is more comfortable growing personal loans now.

An official said business activity remained solid despite the war. The official said \"The overall business momentum and on-the-ground activity are fairly strong despite the war\". Axis Bank also discussed Axis Finance in the briefing. The official said Axis Finance was yet to reach Rs 1 lakh crore assets under management. That level would place it in the upper layer NBFC category.

Axis Bank Axis Finance funding: Kedaara Capital infusion

The official said a funding decision would be taken by Axis Finance management. Minutes after the call with journalists, Axis Bank announced a Rs 2,250 crore infusion into Axis Finance. The money came from Kedaara Capital and the bank itself. It was the first raise from the private equity fund. It also marked the first external investment into the company.

Axis Bank subsidiaries and staff: FY26 profit and headcount changes

Subsidiaries posted a 16 per cent rise in post-tax net profit for FY26. The combined figure came in at Rs 2,051 crore. Axis Bank also reported a fall of over 3,000 employees in FY26. Headcount stood at 1.01 lakh at the end of March 31. An official linked the decline to productivity gains from digital investments.

The official said AI adoption will affect staffing in FY27. The official said most productivity gains came in branches and customer touchpoints. Axis Bank reported capital adequacy of 16.42 per cent. The bank said it has no plans to raise equity capital. The quarter reflected stable asset quality alongside higher prudential buffers.

With inputs from PTI