Highlights

• Axis Bank shares surge by 5.2% today, extending a 39% gain over the past year, followed by release of its quarterly financials.
• Net profit for Q3FY26 reached ₹6,490 crores, up 28% quarter-on-quarter and 3% year-on-year.
• Gross NPA at 1.40% and net NPA at 0.42% reflect stable asset quality for Q3FY26.
• CASA ratio remained steady at 39%, supporting liquidity and stable funding costs amid growth.

Axis Bank Ltd (NSE:AXISBANK) jumped by 5.25% to ₹1324 on 27 January 2026, adding to its 39.65% return over the past year. The stock movement comes alongside the bank’s announcement of its financial results for the quarter and nine months ended 31 December 2025 which highlighted stable earnings, consistent balance sheet growth, and improving asset quality trends. Market attention remained centred on profitability metrics and credit performance amid ongoing shifts in funding costs and loan demand.

For the quarter ended 31 December 2025, Axis Bank reported a net profit of ₹6,490 crores, reflecting a 3% year-on-year increase and a 28% quarter-on-quarter rise. Operating profit for the quarter stood at ₹10,876 crores, while core operating profit was reported at ₹10,815 crores.

Net Interest Income during the quarter (Q3 FY2026) was ₹14,287 crores, rising 5% year-on-year and 4% quarter-on-quarter, with the Net Interest Margin maintained at 3.64%. Fee income grew 12% year-on-year to ₹6,100 crores, with retail fees accounting for 71% of total fee income, contributing to non-interest income stability during the period. Additionally, the company reported return on equity of 14.15%.

Capital Position and Asset Quality Remain in Investor View

As of 31 December 2025, the bank’s balance sheet size stood at ₹17,52,171 crores, reflecting 15% year-on-year growth. Total deposits increased 5% quarter-on-quarter and 15% year-on-year on a month-end basis, while the CASA ratio remained at 39%.

The overall capital adequacy ratio was reported at 16.55%, with a CET-1 ratio of 14.50%, supported by a net accretion of 7 basis points during the quarter. Excess statutory liquidity ratio holdings stood at ₹1,37,919 crores, indicating liquidity buffers during the period.

Asset quality indicators showed sequential improvement in Q3FY26. Gross non-performing assets stood at 1.40%, while net non-performing assets declined to 0.42%. The provision coverage ratio remained at 70%, with an aggregated coverage ratio of 146%. Net credit cost for the quarter was reported at 0.76%, reflecting controlled provisioning levels 

Management Highlights Focus on Innovation and Digital Growth

Amitabh Chaudhry, MD & CEO of Axis Bank, highlighted that the quarter’s progress reflects the bank’s emphasis on improving credit access, reimagining digital banking, and investing in talent and innovation. He noted that Axis Bank will continue modernising platforms, empowering teams, and adapting to changing customer behaviour through innovative solutions.

Digital Banking and Subsidiary Contributions

Axis Bank continued to report scale across its digital and payments businesses, maintaining an estimated market share of around 39% in UPI payer PSP and approximately 14% in credit cards in force. During Q3FY26, the bank acquired around 1 million cards.

Key domestic subsidiaries contributed a combined net profit of ₹1,490 crores for 9MFY26. Axis Finance reported PAT of ₹571 crores, Axis AMC recorded PAT of ₹454 crores, Axis Securities posted PAT of ₹270 crores, and Axis Capital reported PAT of ₹178 crores.

The favourable quarterly performance, stable asset quality, and steady growth across deposits and digital channels appear to have reinforced investor confidence in Axis Bank. With consistent profitability and robust capital buffers, market participants are closely watching how the bank continues to navigate evolving credit demand and payment trends.

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