Axis Bank share price jumps 3.8% on robust Q3 earnings; Double-digit credit growth and stable asset quality to boost sentiment

Shares of Axis Bank jumped over 3.5% on Tuesday morning after the bank reported its quarterly earnings on Monday. The net profit for the bank jumped 3% YoY on strong double-digit credit growth and improved asset quality in the quarter.

Axis Bank reported its Q3FY26 earnings on Monday, posting strong growth across the board. The net-interest income for the quarter jumped 4% sequentially and 5% YoY to ₹14,287 crore as against ₹13,606 crore, while the net-interest margin stood at 3.6%. The core operating profit for the quarter jumped to 7% YoY to ₹10,815 crore.

On the bottomline front, the net profit for the quarter jumped 3% YoY to ₹6,940 crore as against ₹6,304 crore in the same period last year. The provisions for the quarter remained elevated.

On the asset quality front, the GNPA for the quarter ended December stood at 1.40% and NNPA at 0.42%, slightly lower than 1.46% and 0.44% in the previous quarter.

The core advances growth remained robust at 14% YoY to ₹11.59 lakh crore as compared to ₹10.14 lakh crore in the same period last year. The credit growth for the quarter was primarily led by Corporate sector lending, which grew by 27% YoY to ₹3.75 lakh crore vs ₹2.94 lakh crore in the same period last year. The retail segment growth remained tepid at 6% YoY, while the SME segment remained strong at 22% YoY.

Similarly, on the liabilities side, the deposit growth also remained robust at 15% YoY to ₹12.60 lakh crore as against ₹10.95 lakh crore. The low cost funding source, CASA deposits grew by 14% YoY to ₹4.93 lakh crore as compared to ₹4.32 lakh crore. While, term deposits grew by 16% YoY to ₹7.67 lakh crore.