Axis Bank posts modest profit rise in Q3 FY26, maintaining growth momentum

Axis Bank Limited reported a modest rise in profitability for Q3FY26, with operating profit and net profit both improving year-on-year, even as nine-month earnings softened. The Board of Directors approved the results at a meeting in Mumbai on January 26, 2026, covering performance for the quarter and nine months ended December 31, 2025.

For Q3FY26, Axis Bank’s operating profit stood at Rs 10,876 crores, reflecting a 3% year-on-year increase. Net profit for the quarter rose 3% year-on-year to Rs 6,490 crores, while core operating profit, which excludes trading gains and one-offs, advanced 7% year-on-year to Rs 10,815 crores, indicating stable underlying performance.

Net Interest Income during Q3FY26 was Rs 14,287 crores, higher by 5% year-on-year and 4% quarter-on-quarter. The Net Interest Margin for the quarter was 3.64%. Over the first nine months of FY26, net interest income reached Rs 41,591 crores, marking a 3% year-on-year rise, while fee income expanded 11% year-on-year to Rs 17,883 crores.

On a nine-month basis, operating profit increased from Rs 31,353 crores in 9MFY25 to Rs 32,803 crores in 9MFY26, a growth of 5%. Core operating profit also moved up 5%, from Rs 29,341 crores to Rs 30,824 crores over the same period. Total provisions for 9MFY26 amounted to Rs 9,741 crores, contributing to a 10% year-on-year decline in net profit to Rs 17,385 crores.

Axis Bank’s balance sheet expanded 15% year-on-year to Rs 17,52,171 crores as of December 31, 2025. On a month-end basis, total deposits grew 5% quarter-on-quarter and 15% year-on-year. Current account deposits increased 7% sequentially and 20% year-on-year, savings account deposits rose 1% and 11%, and term deposits gained 6% and 16%, respectively.

On a Quarterly Average Balance basis, the bank also reported healthy growth in deposits. Total deposits advanced 5% quarter-on-quarter and 12% year-on-year. Savings account balances grew 2% quarter-on-quarter and 8% year-on-year, current account balances rose 5% and 10%, while term deposits increased 6% quarter-on-quarter and 14% year-on-year. CASA deposits made up 39% of total deposits at the period end.

Axis Bank financial results: asset quality, slippages and provisions

Asset quality metrics improved marginally during the quarter. As of December 31, 2025, gross non-performing assets were 1.40% and net non-performing assets were 0.42%, compared with 1.46% and 0.44% as of September 30, 2025. The bank recovered Rs 799 crores from written-off accounts in the quarter, supporting overall asset quality trends.

After including these recoveries from the written-off pool, reported net slippages for the quarter were Rs 2,335 crores. Within this, Rs 2,506 crores came from retail, Rs 109 crores from the Commercial Banking Group, and Rs 280 crores from wholesale. Gross slippages in Q3FY26 were Rs 6,007 crores, versus Rs 5,696 crores in Q2FY26 and Rs 5,432 crores in Q3FY25.

During the quarter, NPA upgrades and recoveries, excluding the written-off pool, totalled Rs 2,872 crores. Provision coverage as a share of gross NPAs was 70% on December 31, 2025, unchanged from September 30, 2025, but lower than 76% on December 31, 2024. Axis Bank wrote off NPAs amounting to Rs 3,275 crores during the quarter as part of its clean-up strategy.

Metric	Period	Amount / Ratio
Net Profit	Q3FY26	Rs 6,490 crores
Net Profit	9MFY26	Rs 17,385 crores
Gross NPA Ratio	31 Dec 2025	1.40%
Net NPA Ratio	31 Dec 2025	0.42%
Provision Coverage	31 Dec 2025	70%

Axis Bank financial results: branch network and digital outreach

The bank continued to extend its physical footprint alongside digital channels. As of December 31, 2025, Axis Bank operated 6,110 domestic branches and extension counters and 281 Business Correspondent Banking Outlets across 3,315 centres. A year earlier, on December 31, 2024, the network comprised 5,706 domestic branches and extension counters and 202 such outlets across 3,122 centres.

Axis Bank also maintained a large self-service network. As of December 31, 2025, the bank had 12,838 ATMs and cash recyclers nationwide. The Axis Virtual Center supported remote engagement, with 1,582 Virtual Relationship Managers working across eight centres, underscoring the emphasis on both digital and assisted customer service models.

Axis Bank financial results: management commentary and strategic focus

Amitabh Chaudhry, MD & CEO, Axis Bank said: "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 behavior through smart and revolutionary solutions."

The latest Axis Bank financial results show moderate profit growth in Q3FY26, softer net profit over nine months, and steady expansion in the balance sheet and deposits. Asset quality ratios remain contained with stable provision coverage, while the widening physical and virtual network supports the bank’s stated focus on customer access, technology, and franchise growth.