Axis Bank's headcount fell by 3,000 in FY26 due to tech push

Axis Bank’s headcount fell by a little over 3,100 employees in FY26, even as the private sector lender said the decline was linked to technology-led productivity gains rather than any targeted workforce cuts. The bank’s total employee count stood at about 1,01,300 at the end of Q4 FY26, down from around 1,04,400 in Q4 FY25, with the numbers tapering gradually through the year.

The reduction came in a year when the bank also expanded its physical presence and reported a largely flat financial performance for the March quarter. Axis Bank added around 400 branches during the period, while its standalone net profit for Q4 FY26 slipped 0.6 per cent year-on-year to Rs 7,071.31 crore from Rs 7,117.50 crore in the corresponding quarter last year.

Executive Director Subrat Mohanty said that the moderation in headcount is a natural result of the bank's ongoing digital transformation efforts. He added that technology initiatives implemented over the past several years have led to increased productivity and smoother operations throughout the organisation.

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On the financial front, the bank’s Net Interest Income rose 5 per cent year-on-year to Rs 14,457 crore in the March quarter, while Net Interest Margin for Q4 FY26 stood at 3.62 per cent. Total income came in at Rs 38,746.64 crore, up from Rs 38,022.03 crore a year earlier.

Asset quality improved during the quarter. The Gross Non-Performing Assets ratio fell to 1.23 per cent as of March 31, 2026, down 17 basis points quarter-on-quarter and 5 basis points year-on-year. The Net NPA ratio stood at 0.37 per cent, down 5 basis points sequentially. Total advances rose 19 per cent year-on-year to Rs 12,33,569.88 crore, while deposits increased 14 per cent to Rs 13,35,833.97 crore, crossing the Rs 13 lakh crore mark.

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The lender said in a filing that it had proactively strengthened its balance sheet in Q4 FY26 by voluntarily enhancing its prudent provisioning framework for standard assets. As a result, it created an additional one-time provision of Rs 2,001 crore during the quarter. “This action is prudent and precautionary in nature and does not reflect any deterioration in asset quality or adverse credit trends in the Bank’s loan or investment portfolio as of the reporting date,” the bank said.

Axis Bank MD and CEO Amitabh Chaudhry said, “As banking becomes increasingly digital - trust, security and relevance remain foundational. This quarter’s initiatives reflect on our intent to empower customers, invest in partner ecosystems, and strengthen talent and inclusion as enduring growth enablers.” The quarter, therefore, saw Axis Bank report a modest profit movement alongside lower headcount, branch expansion and continued investment in technology and provisioning.