Axis Bank Q1 Results: Axis Bank's profit is Rs 5,806 crore, but NPA and provision increased

News Topical, Digital Desk : Net Interest Income (NII) - The bank's net interest income (NII) stood at Rs 13,560 crore, which is 0.8% higher than last year's Rs 13,448 crore. However, it was slightly lower than CNBC-TV18's estimate of Rs 13,726 crore. NII is the amount that shows the difference between the bank's earnings and expenses from interest.

Increase in provision - The bank's provision and contingency expenses stood at Rs 3,948 crore this quarter, which is much higher than Rs 1,359 crore in the previous quarter. This increase was a major reason for pressure on profits. Decline in asset quality - The bank's asset quality also saw a decline. Gross non-performing assets (NPA) rose to Rs 17,765 crore, from Rs 14,490 crore in the previous quarter. Net NPA stood at Rs 5,066 crore, which is more than Rs 3,685 crore in the previous quarter. Gross NPA ratio stood at 1.57%, up from 1.28% in the previous quarter. Net NPA ratio also improved to 0.45%, up from 0.33% in the previous quarter. Growth in deposits and loans - Axis Bank recorded 9% year-on-year growth in total deposits, with CASA (current and savings account) ratio remaining strong at 40%. Total loans grew by 8% and retail loans grew by 6%. Ahead in digital payments - Axis Bank continues to be the leader in UPI payments, with a market share of around 32%. The bank also leads in merchant acquiring business. To enhance security, the bank has introduced 'in-app mobile OTP' feature, which eliminates the need for SMS-based OTP and reduces the risk of fraud. The bank has partnered with Flipkart Group's super.money and RuPay to launch a co-branded credit card for UPI users. This step will further improve the customer experience. Performance of subsidiaries - Axis Finance reported a 23% year-on-year growth in profit after tax (PAT), while Axis AMC achieved a 12% growth. What did the management say? Axis Bank MD and CEO Amitabh Chaudhry said, "We are optimistic about the financial year 2026. With favorable regulatory conditions and digital capabilities, large and strong banks like Axis are ready to take advantage of this opportunity." The stock of this bank, which has a market capitalization of about Rs 3.6 lakh crore, closed at 1,161 on Thursday, down about half a percent ahead of the results.
 

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