Axis Bank Q2 earnings: Net profit falls 26% on higher provisions, net interest income rises 2%

Axis Bank, the country's leading private sector lender, on Wednesday, October 15, reported net profit of ₹5,090 crore in the second quarter of current financial year, marking a decline of 26% from ₹6,918 crore in the same period last year.

The decline in profit came on the back of higher provisioning for bad loans as its provisions jumped 61% to ₹3,547 crore from ₹2,204 crore in the year-ago period.

Axis Bank's net interest income (NII) or the difference between interest earned on loans and expended on deposits rose nearly 2% to ₹13,744 crore from ₹13,483 crore.

The Mumbai-based lender's asset quality remained largely stable in July-September period as its gross non-performing assets (NPA), as a percentage of total advances, came in at 1.46% compared with 1.44% in the same period last year.

Its net NPA rose by 10 basis points to 0.44%.

In absolute terms, gross NPAs came in at ₹17,308 crore compared with ₹15,466 crore in the year-ago period.

During the quarter, Axis Bank launched two industry-first solutions that redefine customer safety and financial access. It launched ‘Lock FD’ to digitally block premature fixed deposit withdrawals and introduced India’s first gold-backed credit line on UPI for MSMEs and self-employed entrepreneurs, in partnership with Freecharge.

Axis Bank strengthened its cards and payments leadership, growing UPI share from 32% to 37% and crossing 15 million cards in force. It launched an all-in-one soundbox for small merchants, accepting all payment modes to deepen the market reach, the Mumbai-based lender said in a press release.

"This quarter, we continued to push ourselves as an institution to deliver meaningful progress. From enhancing digital safety to expanding access to credit and empowering entrepreneurs, our innovations are designed to serve real needs with precision and scale," said Amitabh Chaudhry, MD & CEO, Axis Bank.

"We believe true transformation is not just about technology, it’s about relevance, strength, and responsibility. As we move forward, our focus remains on building a bank that is agile, inclusive, and an all-weather franchise. One that leads with purpose in a rapidly evolving world," he added.

The bank’s overall distribution network stands at 5,976 domestic branches and extension counters along with 259 Business Correspondent Banking Outlets (BCBOs) situated across 3,238 centres at the end of September quarter.

The bank had 13,177 ATMs and cash recyclers spread across the country.

Axis Bank shares ended 0.37% lower at ₹1,172 ahead of its earnings announcement.