Axis Bank Q2 Results 2025: Net Profit Falls 26% YoY to ₹5,090 Crore, NII Beats Estimates

Mumbai, October 15, 2025 – Axis Bank, one of India’s leading private sector lenders, announced its financial results for the quarter ended September 30, 2025 (Q2 FY26). The bank reported a 26% year-on-year decline in net profit, which came in at ₹5,090 crore, compared to ₹6,918 crore in the same quarter last year.

Despite the drop in profit, the bank posted a strong performance on other key metrics, especially in Net Interest Income (NII) and asset quality.

Key Highlights:

Net Profit: ₹5,090 crore (down 26% YoY from ₹6,918 crore)

Net Interest Income (NII): ₹13,744 crore (up YoY, beats market expectations)

Gross Non-Performing Assets (Gross NPA): Improved to 1.60% from 1.73%

Net Non-Performing Assets (Net NPA): Reduced to 0.40% from 0.41%

Provision Coverage Ratio (PCR): Stands at 76%

NII Growth Signals Strong Core Operations

The bank's Net Interest Income (NII) — the difference between interest earned and interest expended — rose to ₹13,744 crore, showing resilience in the core banking business despite challenges in the external environment. Analysts had expected a slightly lower figure, indicating that the bank outperformed expectations.

Asset Quality Improves

Axis Bank reported a positive trend in asset quality. The Gross NPA ratio improved to 1.60%, down from 1.73% in the previous quarter. Similarly, the Net NPA stood at 0.40%, showing marginal improvement. This indicates effective credit monitoring and recovery efforts by the bank.

Commentary from Management (Expected)

While the bank has not yet released an official commentary, analysts expect the management to focus on cost optimization, digital transformation, and retail loan book growth in the upcoming quarters. The decline in profit may be attributed to higher provisions or one-time charges, details of which are expected in the investor presentation.

Outlook

Despite the YoY drop in profit, Axis Bank’s operational performance and improved asset quality suggest a stable financial position. With consistent NII growth and a strong balance sheet, the bank appears well-positioned to capitalize on credit demand in the festive and post-festive seasons.

About Axis Bank:

Axis Bank is the third-largest private sector bank in India. It offers a wide spectrum of financial services to customer segments covering large and mid-corporates, MSMEs, agriculture, and retail businesses.