Axis Bank reported a 23% rise in Q1 FY26 net profit to ₹7,114 crore, driven by improved margins and asset quality. Total income grew 6% to ₹40,721 crore, while Net Interest Income rose 8% to ₹14,646 crore. Gross NPAs fell to 1.28% and net NPAs to 0.39%. The bank maintained ₹2,001 crore in West Asia-related provisions and appointed Rajeev Mantri as CFO effective September 28, 2026.
According to www.thehindubusinessline.com, Axis Bank reported a 23% year-on-year increase in net profit for the June quarter of FY26, reaching ₹7,114 crore — up from ₹5,806 crore in Q1 FY25.
Revenue and margin performance
Total income rose 6% to ₹40,721 crore, compared with ₹38,322 crore in the same period last year. Net Interest Income (NII) increased 8% to ₹14,646 crore, supported by a Net Interest Margin (NIM) of 3.46%. Fee income grew 7% year-on-year to ₹6,156 crore, with retail fees contributing 67% of total fee income.
Non-interest income and provisioning
Non-interest income — comprising fee, trading, and miscellaneous income — totaled ₹6,735 crore. Provisions and contingencies amounted to ₹2,223 crore, including specific loan loss provisions of ₹2,079 crore. As of June 30, 2026, the bank held cumulative provisions of ₹15,608 crore, translating into a standard asset coverage ratio of 1.24%.
Proactive risk management
In response to macroeconomic and geopolitical uncertainties, Axis Bank voluntarily enhanced its prudent provisioning framework for standard assets during Q4 FY26. It created an additional one-time provision of ₹2,001 crore related to West Asia exposure. The bank confirmed it has not drawn down this provision, which remains fully intact as of June-end.
Asset quality improvements
Gross non-performing assets (NPAs) declined to 1.28% (from 1.57% a year earlier), while net NPAs fell to 0.39% (down from 0.45%). Gross slippages dropped sharply to ₹5,566 crore from ₹8,200 crore in the prior-year quarter. Recoveries from written-off accounts stood at ₹961 crore, and recoveries plus upgrades from NPAs totaled ₹2,126 crore. The bank wrote off ₹2,399 crore in NPAs during the quarter.
Leadership appointment
The board appointed Rajeev Mantri as chief financial officer effective September 28, 2026. Mantri previously served as executive president and chief financial officer at Bandhan Bank. His appointment follows Axis Bank’s continued focus on strengthening governance and financial oversight amid evolving regulatory and economic conditions.
Source: thehindubusinessline.com
Compiled from international media by the SCI.AI editorial team.
