Mumbai: Axis Bank Limited, one of India’s leading private sector lenders, on Thursday reported strong financial performance for the third quarter of FY26, with its net profit rising sharply on the back of steady loan growth, improved margins, and stable asset quality.
For the quarter ended December 31, 2025, the bank posted a net profit of ₹6,490 crore, registering a 28% increase quarter-on-quarter (QoQ) and a 3% rise year-on-year (YoY). The unaudited results were approved by the bank’s Board of Directors at a meeting held in Mumbai.
Strong Operating Performance
Net Interest Income (NII) for the quarter stood at ₹14,287 crore, up 5% YoY and 4% QoQ, while the Net Interest Margin (NIM) remained healthy at 3.64%. Core operating profit increased to ₹10,815 crore, reflecting 7% YoY and 9% QoQ growth.
Fee income continued its upward trajectory, growing 12% YoY to ₹6,100 crore, supported by strong performance across retail, cards, and transaction banking segments.
Loan and Deposit Growth
Total advances grew 14% YoY to ₹11.59 lakh crore, while deposits rose 15% YoY to ₹12.61 lakh crore. The bank maintained a stable CASA ratio of 39%, underscoring a balanced funding profile.
Axis Bank’s focus on diversification continued to yield results, with the Small Business Banking, SME, and Mid-Corporate portfolio now accounting for 24% of total loans, an increase of approximately 705 basis points over the last four years. The SME loan book grew 22% YoY, while corporate loans expanded 27% YoY.
Asset Quality Improves Further
Asset quality indicators showed continued improvement. The Gross NPA ratio declined to 1.40%, down 6 basis points both QoQ and YoY, while the Net NPA ratio improved to 0.42%, down 2 basis points QoQ. The Provision Coverage Ratio remained robust at 70%.
Capital, Liquidity, and Digital Leadership
Axis Bank remained well-capitalized with a Capital Adequacy Ratio of 16.55% and a CET-1 ratio of 14.50%. Liquidity also stayed strong, with an average Liquidity Coverage Ratio of around 116% during the quarter and excess SLR holdings of ₹1.38 lakh crore.
On the digital front, the bank retained its leadership position in the UPI ecosystem, with a payer PSP market share of nearly 39%. It added around one million new credit cards during the quarter and launched several innovations, including the industry-first Express Banking Digital Point and the Google Pay Axis Bank Flex Card, a UPI-powered digital RuPay credit card.
Subsidiaries Deliver Solid Results
Axis Bank’s key domestic subsidiaries posted a combined net profit of ₹1,490 crore for 9MFY26, up 6% YoY. Axis Finance reported a 12% YoY increase in profit, while Axis AMC and Axis Capital recorded 20% growth each.
Management Outlook
Commenting on the results, Amitabh Chaudhry, Managing Director and CEO of Axis Bank, said the bank’s performance reflects its continued focus on customer-centric innovation, digital transformation, and long-term value creation.
With strong fundamentals, improving asset quality, and sustained digital momentum, Axis Bank remains well-positioned to navigate evolving market conditions and drive sustainable growth.