Axis Bank Q2 net profit slips 26% to ₹5,090 crore due to RBI-advised provisioning

Axis Bank Ltd., for the second quarter which ended September 30, 2025, reported 26% drop in standalone net profit to ₹5,090 crore as compared to the year ago period due to Reserve Bank of India’s mandated one time provisioning. Following an RBI advisory, post its FY25 annual inspection, the bank said in Q2FY26 it made an additional one-time standard asset provision of ₹1,231 crore for two discontinued crop loan variants. The customer terms remain unchanged. “This standard asset provision will be written back to the P&L when all the outstanding loans in the two discontinued product variants are recovered or closed in normal course or by March 31, 2028 (subject to any residual outstanding loan accounts on that date being closed), whichever is earlier,” the bank said in a filing. Also read: Axis Bank Q1 net profit slips 4% to ₹5,806 crore on higher provisions “No divergence in asset quality or NPA provisioning was identified in the said annual inspection,” the bank said. For the quarter the bank’s Net Interest Income (NII) stood at Rs 13,745 crore up 2% YoY basis. Net Interest Margin (NIM) for Q2FY26 stood at 3.73%. Provision and contingencies for Q2FY26 stood at Rs 3,547 crore. Specific loan loss provisions for Q2FY26 stood at Rs 2,133 crore. The bank holds cumulative provisions (standard + additional other than NPA) of Rs 13,262 crore at the end of Q2FY26. “It is pertinent to note that this is over and above the NPA provisioning included in our PCR calculations. These cumulative provisions translate to a standard asset coverage of 1.13% as on 30th September 2025,” the bank said in the filing. Gross NPA ratio has increased to 1.46% from 1,44% YoY. Net NPA also increased to 0.44% from 0.34% YoY. The bank’s balance sheet grew 11% YoY and stood at Rs16,76,614 crore as on September 30, 2025. The total deposits grew 11% YoY on month end basis. The bank’s advances grew 12% YoY to ₹11,16,703 crore as on September 30, 2025. Retail loans grew 6% YoY to ₹6,35,460 crore and accounted for 57% of the net advances of the bank. The share of secured retail loans was 72%, with home loans comprising 26% of the retail book. Small Business Banking (SBB) grew 14% YoY, Loan against property grew 22% Y0Y, Personal loans grew 4% YoY, Credit card advances grew 7% YoY and Rural loan portfolio grew 2% YoY. SME book remains well diversified across geographies and sectors, grew 19% YoY to ₹1,31,506 crore. The corporate loan book grew 20% YoY; domestic corporate book grew 25% YoY. Mid-corporate book grew 28% YoY . 90% of corporate book is now rated A- and above with 89% of incremental sanctions in Q2FY26 being to corporates rated A- and above, the bank said.