Axis Bank Q3 results: Net profit rises 3% YoY to Rs 6,490 crore, NII grows 5%

The private lender earned an interest income of Rs 32,274 crore in Q3FY26, up 4.3% over Rs 30,954 crore posted in the corresponding period of the last financial year.

The lender paid Rs 17,988 crore in interests on deposits in the quarter under review, which was up nearly 4% from Rs 17,348 crore in Q3FY25.

The company profit after tax (PAT) surged 27% on a sequential basis from Rs 5,090 crore in Q2FY26.

The bank’s Net Interest Income (NII) for Q3FY26 stood at Rs 14,287 crores up 5% YoY and 4% QoQ while its Net Interest Margin (NIM) for Q3FY26 stood at 3.64%.

Other incomeFee income for Q3FY26 grew 12% YOY to Rs 6,100 crores while retail fees grew 12% YoY and it 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. The miscellaneous income in Q3FY26 stood at Rs 65 crores.Operating profitThe Bank’s operating profit for the quarter stood at Rs 10,876 crores up 3% YOY while core operating profit stood at Rs 10,815 crores up 7% YOY.

The operating cost grew 7% YoY in Q3FY26.

Provisions & contingenciesProvision 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.

This is over and above the NPA provisioning included in our PCR calculations, the bank filing said.

These cumulative provisions translate to a standard asset coverage of 1.14% as on December 31, 2025.

On an aggregated basis, Axis Bank’s provision coverage ratio stood at 146% of GNPA as on December 31, 2025.

Balance sheetThe Bank’s balance sheet grew 15% YOY and stood at Rs 17,52,171 crore as on December 31, 2025. The total deposits grew 5% QoQ and 15% YoY on month end basis, of which current account deposits grew 7% QoQ and 20% YoY while saving account deposits grew 1% QoQ and 11% YoY.

The term deposits grew 6% and 16% on QOQ and YOY basis, respectively.

The share of CASA deposits in total deposits stood at 39%.

The Bank’s advances grew 14% YoY and 4% QOQ to Rs 11,59,052 crores as on December 31, 2025. The retail loans grew 6% YoY to Rs 6,44,575 crore and accounted for 56% of the net advances of the bank.

The share of secured retail loans 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, the bank claimed. It grew 6% QoQ and 22% YOY to Rs 1,39,327 crore. The corporate loan book grew 7% QoQ and 27% YoY.

The bank’s overall distribution network stood at 6,110 domestic branches and extension counters along with 281 Business Correspondent Banking Outlets (BCBOs) situated across 3,315 centers as at December 31, 2025 compared to 5,706 domestic branches and extension counters, and 202 BCBO’s situated in 3,122 centers as at December 31, 2024.