Banking stocks in focus: Axis Bank falls over 4%, IndusInd Bank shares jump 6.1% after Q4 earnings

Axis Bank, IndusInd Bank and RBL Bank and other banking stocks are in the spotlight today following the announcement of their quarterly earnings. Most of these banks reported mixed March quarter earnings with steady rise in net interest income (NII), while profitability has dropped or remained in low-single digit.

Axis Bank fall nearly 5% after higher provisions

Axis Bank shares declined nearly 5% in early morning trades reacting to its Q4FY26 earnings. The private lender reported flat growth in Q4 net profit to ₹7,071 crore, down 0.6% YoY, mainly due to a sharp spike in provisions and a trading loss. Total provisions and contingencies rose 159% YoY to ₹3,522 crore during the quarter.

Net interest income up 4.7% YoY to ₹14,457 crore compared to ₹13,811 crore in a year-ago period, while net interest margins (NIM) stood at 3.62%. Asset quality improved, with gross NPAs declining to 1.23% (down 17bps QoQ) and net NPAs to 0.37% (down 5bps QoQ). Slippages moderated sharply, and credit costs improved sequentially.

Axis Bank advances saw a rise of 19% YoY and 6% QoQ to ₹12.34 lakh crore, led by strong growth in corporate and SME segments. Along with the results, Axis Bank also announced final dividend of ₹1 per share for its shareholders.

IndusInd Bank turn profitable in March quarter

IndusInd Bank shares rose over 6.1% intraday to hit a day high of ₹899.9 apiece on NSE after the private lender swung back to profitability with net profit of ₹594 crore compared to loss of ₹2,236 crore in the year-ago period due to lower provisions, which fell sharply by 38.6% YoY to ₹1,484 crore during the quarter.

IndusInd Bank net interest income (NII) increased 43.4% YoY to ₹4,372 crore, driven by a low base and improved interest income dynamics. Net interest margin (NIM) improved to 3.39% from 2.25% a year-ago.

Gross non-performing assets (NPA) ratio improved to 3.43% from 3.56% in the previous quarter, while net NPA improved to 1.00%, indicating better underwriting in the microfinance segment. IndusInd Bank declared a final dividend of ₹1.50 per share, which is the first dividend in nearly two years.

RBL Bank Q4 net profit jumps 234% YoY

RBL Bank shares declined 4.7% intraday despite reporting 234% YoY jump in net profit to ₹230 crore, driven by 13% YoY drop in provisions to ₹678 crore. NII rose by 7% YoY to ₹1,671 crore, aided by strong advances growth of 23% YoY. Gross NPA improved to to 1.45% from 1.88% QoQ, while Net NPA dropped to 0.39% from 0.55% in the previous quarter.

RBL Bank net advances grew 23% YoY and 11% QoQ to ₹114,232 crore, while total deposits for the company grew 25% YoY and 16% QoQ to ₹139,018 crore. The lender also declared a dividend of ₹ 1 per share of ₹10 face value.

IDFC First Bank reports stable Q4 earnings

IDFC First Bank shares rose 3.6% intraday and hit a day high of ₹69.7 apiece on NSE after the bank reported steady growth in the March quarter. In Q4FY26, IDFC First Bank reported 4.9% YoY rise in net profit to ₹319 crore driven by growth in core business.

Net interest income (NII) surged 15.7% YoY to ₹5,677 crore, supported by 20% loan growth (reaching ₹2.90 lakh crore), while asset quality improved during the quarter as Gross NPA fell to 1.61% from 1.69% sequentially and net NPA stood at 0.48% from 0.53%. The board of directors of the bank announced a dividend of ₹0.25 per share.

DCB Bank report robust 17.4% YoY growth in NII

Another private bank, DCB Bank saw strong traction as its shares rose 6.4% intraday before witnessing profit booking. Private sector lender reported a 16% increase in net profit to ₹206 crore, driven by robust NII growth during the March quarter.

Net interest income (NII) rose 17.4% YoY to ₹655 crore. Meanwhile, Asset quality improved sequentially, with the gross NPA ratio declining to 2.45% from 2.72% in the previous quarter. Net NPA ratio also eased to 0.89% from 1.10% QoQ. DCB Bank announced final dividend of ₹1.45 per share for FY26.