Axis Bank Shares Rise Despite Profit Drop
Axis Bank reported a 26 % year-on-year drop in net profit for Q2 FY26, down to ₹5,090 crore. The decline was driven by a sharp rise in provisions, including a one-time ₹1,231 crore standard asset provision linked to discontinued crop loans.
Core performance shows resilience
Despite the earnings hit, the bank’s core business held steady. Net interest income grew 2 %, and the net interest margin (NIM) contracted only mildly — from 3.80 % in Q1 to 3.73 %. Advances grew 12 % year-on-year, and deposits increased 11 %.
Asset quality trends positive
The bank’s gross non-performing assets ratio improved to 1.46 % from 1.57 % in the prior quarter. Net NPAs stood at 0.44 %.
Market and broker reaction
Axis Bank shares jumped as much as 4 %, making it an early top gainer in the Nifty 50. Several brokerages retained bullish views, calling the provisioning hit a one-off and citing strong underlying metrics.
