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Axis Bank Q4FY26 results show a small drop in profit, but the overall business remains strong. The bank reported a net profit of Rs. 7,071 crore for the March quarter. This is slightly lower than last year by 0.6%. The main reason for this dip is higher prudential provisions taken during the quarter.
The bank decided to set aside more money as a safety step. Total provisions rose sharply to Rs. 3,522 crore. This includes a one-time provision of Rs. 2,001 crore for standard assets. This move aims to make the balance sheet stronger and safer. Even though loan loss provisions fell, the higher total provisions reduced the final net profit.
At the same time, the core business showed good growth. Net interest income increased by 5% and reached Rs. 14,457 crore. This growth came from strong loan demand. Total loans grew 19% to over Rs. 12.33 lakh crore. Corporate loans grew fast, while SME loans also saw healthy growth.
Deposits also increased at a steady pace. Total deposits rose 14% to Rs. 13.35 lakh crore. The CASA ratio stayed stable at 40%, which helped reduce funding costs. This supported the bank’s income even as expenses increased.
However, income from other sources declined. Non-interest income fell by 11% due to trading losses. Still, fee income showed some growth, mainly from retail customers. This shows steady activity in daily banking services.
Expenses went up during the quarter. Operating expenses increased by 6%. This led to a 7% fall in operating profit, which stood at Rs. 10,013 crore. Even then, cost control improved slightly as the cost-to-assets ratio came down.
Asset quality stayed strong and even improved a bit. Gross NPA dropped to 1.23%, while net NPA stood at 0.37%. The bank also kept a good provision coverage ratio of 70%. This shows careful risk management.
Capital levels remained strong. The capital adequacy ratio stood at 16.42%. This gives enough support for future growth.
Overall, Axis Bank Q4FY26 results show a clear picture. The bank chose safety by increasing prudential provisions. At the same time, net interest income and asset quality stayed strong. This shows stable performance and a focus on long-term growth.
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