Axis Bank reports marginal decline in Q4FY26 standalone net profit at ₹7,071 cr

Given the constantly shifting and uncertain macro‑economic and geopolitical landscape, the bank set aside a one‑time provision of ₹2,001 crore

Axis Bank’s fourth‑quarter standalone net profit slipped slightly to ₹7,071 crore, down from ₹7,117.5 crore a year earlier, dragged down by weaker other income and a one‑time provision.

For FY 26, net profit fell 7 % year‑on‑year to ₹24,457 crore, compared with ₹26,373 crore in FY 25.

The board of the country’s third‑largest private‑sector lender proposed a final dividend of ₹1 per share (face value ₹2) for FY 26.

The board sanctioned the issuance of domestic‑ or foreign‑currency debt worth up to ₹35,000 crore, and also approved raising as much as ₹20,000 crore through equity shares or depository receipts.

Management noted that the debt‑instrument fundraising will be pursued in FY 27, whereas the equity‑share option is merely an enabling measure.

Net interest income – the gap between interest earned and paid – rose roughly 5 % year‑on‑year to ₹14,457 crore, up from ₹13,811 crore in Q4 FY 25.

The bank’s overall net interest margin eased to 3.62 %, down from 3.97 % a year earlier.

‘Other income’ – comprising investment gains/losses, FX and derivative earnings, guarantee/commission fees, service charges and third‑party product sales – fell 11 % year‑on‑year to ₹6,023 crore, versus ₹6,780 crore previously.

Total provisions and contingencies (excluding tax) surged 159 % to ₹3,522 crore from ₹1,359 crore. Within this, loan‑loss provisions fell 16 % year‑on‑year to ₹1,146 crore.

In light of the shifting and uncertain macro‑economic and geopolitical backdrop, the bank set aside an extra one‑time provision of ₹2,001 crore.

Commenting on the extra provision, CFO Puneet Sharma said it is a prudent, precautionary step that does not signal any weakening in asset quality or adverse credit trends in the bank’s loan or investment book as of the reporting date. He added that core asset‑quality indicators remain steady and within the bank’s risk tolerance.

According to the bank’s current assessment, the provision—derived from internal stress‑testing by the risk team under severe yet plausible downside scenarios—should be ample to cover any extra provisioning needs even under the worst‑case FY 27 scenario, he noted.

Sharma explained that the adverse scenario presumes oil averaging above $150 a barrel for a year, inflation at 7.4 % and a 20 % currency depreciation from today’s levels, among other factors.

MD & CEO Amitabh Chaudhry remarked, “Our portfolio shows no indication that these contingency provisions will be tapped; the decision isn’t driven by current conditions but by the lingering uncertainty across West Asia.”

He added, “Risk remains uncertain and volatile, with contradictory headlines appearing daily. In this environment, we deemed it prudent to set aside some provisions.”

He stressed that should the crisis be resolved, the provision—based on the bank’s framework—could be reversed later.

“We have stated our aim to be a conservative franchise, and that is precisely what we are doing,” Chaudhry said.

Total deposits rose 14 % year‑on‑year to ₹13,35,834 crore at the end of March 2026. The share of low‑cost CASA deposits slipped slightly to 40 % of total deposits, down from 41 % a year earlier.

Advances increased 19 % year‑on‑year to ₹12,33,570 crore. Corporate loans led the growth at 38 %, with SME loans up 24 % and retail loans up 8 %.

Published on April 25, 2026