Axis Bank Q2 earnings: Net profit falls 26%, net interest income at Rs 13,475 crore

Q2 FY26 Earnings: Axis Bank logged a 26% year-on-year fall in its September quarter net profit today. Profit came at Rs 5090 crore in Q2 against Rs 6917.57 crore in the year-ago period. Net interest income rose 2% to Rs 13,475 crore in the September 2025 quarter.  However, operating profit for Q2FY26 fell 3% to Rs 10,413 crore on a Y-o-Y basis. 

Operating costs climbed 5% YOY in Q2FY26. 

The lender reported Gross NPA and Net NPA levels at 1.46% and 0.44% in Q2 respectively against 1.57% and 0.45% as on June 2025. In the September 2024 quarter, gross NPA and net NPA levels stood at 1.44% and 0.34%. 

As on September 30, 2025, the Bank’s provision coverage, as a proportion of Gross NPAs stood at 70% compared to 71% as on June 30, 2025 and 77% as at September 30, 2024.

Gross slippages in Q2 came at Rs 5,696 crore compared to Rs 8,200 crore in Q1FY26 and Rs 4,443 crores in Q2 FY25. Fee income for Q2FY26 rose 10% YOY to Rs 6,037 crore. Retail fees climbed 10% YOY; and constituted 71% of the bank’s total fee income. 

Total deposits climbed 11% to Rs 12.03 lakh crore in Q2 against Rs 10.86 lakh crore in the year ago period. Net advances rose 12% to Rs 11.16 lakh crore in Q2 against Rs 9.99 lakh crore in the year ago period. 

The earnings were announced after market hours on Wednesday. The banking stock ended 0.65% lower at Rs 1169 against the previous close of Rs 1176.60 on BSE. Market cap of the lender stood at Rs 3.62 lakh crore. On NSE,the banking stock closed 0.65% lower at Rs 3.62 lakh crore.