Axis Bank Q2 Results FY26: NII Rose by 2%, Profit Drops by 26%

Axis Bank Q2 results 2025 declared that the net interest income increased by 2% on a year-on-year basis to ₹13,745 crores from ₹13,483 crores in the same period of the last financial year. On the Axis Bank Q2 results date, i.e., on Oct 15, 2025, Axis Bank share price closed with a fall of 0.61% at ₹1,169.60.

In this blog, we’ll deep dive into the Axis Bank Q2 results, including its profit, asset quality, margin, and management commentary.

Axis Bank Q2 Results FY26: Net Profit and ROA

• As per the Axis Bank Q2 earnings release, the company reported a net profit of ₹5,090 crores, which dropped by 26% YoY from ₹6,918 crores in Q2 FY25.
• The Net Interest Margin (NIM) for Q2FY26 stood at 3.73%.
• The core operating profit increased by 3% YoY to ₹9,915 crores in Q2 FY26 from ₹9,601 crores in the same period of the last year.
• Return on Average Assets (ROA) declined to 1.23% in Q2 FY26, down from 1.84% in Q2 FY25.
• Return on Equity (ROE) also eased to 11.06%, compared with 17.58% last quarter, reflecting pressure on earnings despite stable asset quality.

Axis Bank Q2 Results 2025: Asset Quality

• In the Axis Bank Q2 results FY26, GNPA (Gross Non-Performing Assets) stood at 1.46%, marking an 11 bps decline QoQ, though slightly up 2 bps YoY.
• NNPA (Net Non-Performing Assets) remained low at 0.44%, down 1 bp QoQ, reflecting prudent risk management.
• Provision Coverage Ratio (PCR) is healthy at 70%, and on an aggregated basis, the coverage ratio reaches 147%, underscoring strong buffers against potential credit losses.
• Gross slippage ratio fell to 2.11%, down 102 bps QoQ, while the net slippage ratio declined to 1.05%, down 128 bps QoQ, signaling fewer fresh stressed assets.
• Retail asset quality is stabilising, with net slippages and net credit costs in the retail business lower than Q2FY25.
• Overall, net credit cost dropped to 0.73%, down 65 bps QoQ, indicating better risk management and loan performance.

Axis Bank Q2 Results: Deposits and Advances

• Axis Bank’s total deposits reached ₹12,03,487 crores as on September 2025, up from ₹10,86,744 crores in Q2 FY25, marking an 11% YoY growth.
• Current and savings account balances (CASA) stood at ₹4,79,007 crores, compared with ₹4,41,053 crores last year (9% YoY), indicating a rising low-cost deposit base.
• As of Sep 2025, term deposits increased to ₹7,24,480 crores from ₹6,45,691 crores in Sep 2024, up 12% YoY, showing investor confidence in long-term deposit products.
• The net advances rose to ₹11,16,703 crores as on Sep 2025 from ₹9,99,979 crores in Sep 2024, up 12% YoY. There is a broad-based loan growth across all segments, including corporate, SME, and retail.

Axis Bank Q2 Results 2025: Management Commentary

Amitabh Chaudhry, MD & CEO, Axis Bank said, “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. 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.”

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