Axis Bank Q3FY26 Result
Bottomline rises 3%, asset quality stable
Most of the big results are already done, and we are doing the last leg of the results. Today, I am covering the Axis Bank results. You can check all the results for this quarter HERE.
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Axis Bank Q3FY26 Result
Net Interest Income and Net Interest Margin
The Bank’s Net Interest Income (NII) for Q3FY26 stood at Rs 14,287 crores up 4% QOQ and 5% YOY basis. Net Interest Margin (NIM) for Q3FY26 stood at 3.64%.
Other Income
Fee income for Q3FY26 grew 12% YOY to Rs 6,100 crores. Retail fees grew 12% YOY; and constituted 71% of the Bank’s total fee income. Fees from Third Party Products grew 12% YOY. The Corporate & Commercial banking fees together grew 11% YOY to Rs 1,743 crores. The trading income gain for the quarter stood at Rs 61 crores; miscellaneous income in Q3FY26 stood at `65 crores. Overall, non-interest income (comprising of fee, trading and miscellaneous income) for Q3FY26 stood at Rs 6,226 crores.
Operating Profit and Net Profit
The Bank’s operating profit for the quarter stood at Rs 10,876 crores up 3% YOY. Core operating profit stood at Rs 10,815 crores up 7% YOY. Operating cost grew 7% YOY in Q3FY26. Net profit up 3% YOY to `6,490 crores in Q3FY26.
Provisions and contingencies
Provision and contingencies for Q3FY26 stood at Rs 2,246 crores. Specific loan loss provisions for Q3FY26 stood at Rs 2,307 crores. The Bank holds cumulative provisions (standard + additional other than NPA) of Rs 13,111 crores at the end of Q3FY26. 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 1.14% as on 31 st December 2025. On an aggregated basis, the provision coverage ratio (including specific + standard + additional) stands at 146% of GNPA as on 31 st December 2025. Credit cost (annualized) for the quarter ended 31 st December 2025 stood at 0.76%.
Balance Sheet
The Bank’s balance sheet grew 15% YOY and stood at Rs 17,52,171 crores as on 31 st December 2025. The total deposits grew 5% QOQ and 15% YOY on month end basis, of which current account deposits grew 7% | 20%, saving account deposits grew 1% | 11% and term deposits grew 6% | 16% on QOQ | YOY basis, respectively. The share of CASA deposits in total deposits stood at 39%. On QAB basis, total deposits grew 5% QOQ and 12% YOY, within which savings account deposits grew 2% | 8%, current account deposits grew 5% | 10%, and term deposits grew 6% | 14% on QOQ | YOY basis, respectively.
The Bank’s advances grew 14% YOY and 4% QOQ to Rs 11,59,052 crores as on 31st December 2025. Retail loans grew 6% YOY to Rs 6,44,575 crores and accounted for 56% of the net advances of the Bank. The share of secured retail loans1 was ~73%, with home loans comprising 26% of the retail book.
Small Business Banking (SBB) grew 2% QOQ and 14% YOY, Loan against property grew 20% YOY, Personal loans grew 2% QOQ and 5% YOY, Credit card advances grew 3% YOY and Rural loan portfolio grew 2% QOQ. SME book remains well diversified across geographies and sectors, grew 6% QOQ and 22% YOY to Rs 1,39,327 crores. Corporate loan book grew 7% QOQ and 27% YOY; domestic corporate book grew 28% YOY. Mid-corporate book grew 31% YOY and 6% QOQ. ~90% of corporate book is now rated A- and above with 88% of incremental sanctions in Q3FY26 being to corporates rated A- and above.
Asset Quality
As on 31st December 2025, the Bank’s reported Gross NPA and Net NPA levels were 1.40% and 0.42% respectively, as against 1.46% and 0.44% as on 30th September 2025. Recoveries from written off accounts for the quarter were Rs 799 crores. Reported net slippages in the quarter adjusted for recoveries from written off pool was Rs 2,335 crores, of which retail was Rs 2,506 crores, CBG was `109 crores and Wholesale was negative Rs 280 crores.
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