Axis Bank’s shares surged up to 4% after the lender reported a 26% year-on-year decline in net profit to ₹5,090 crore for Q2 FY26, as higher provisions weighed on earnings. The stock touched ₹1,216.9 in early trade versus the previous close of ₹1,172.5. Total income grew 1% to ₹37,595 crore, while net interest income rose 2% to ₹13,745 crore. The net interest margin (NIM) slipped to 3.73% from 3.8% in the previous quarter and 3.99% a year ago, reflecting the impact of the RBI’s 100-basis-point rate cuts this year.
Asset quality improved, with gross NPAs at 1.46% and net NPAs at 0.44%. Provisions jumped 61% to ₹3,547 crore, including a one-time ₹1,231 crore provision for discontinued crop loan products, which CFO Puneet Sharma said are fully secured and will be written back by FY28. Despite this, the bank posted 12% loan growth and stable deposit expansion. Brokerages maintained positive outlooks—HSBC, Nomura, Jefferies, and Bernstein all issued ‘buy’ or ‘outperform’ ratings with target prices between ₹1,250–₹1,460, citing strong asset quality, loan growth, and resilient core performance.
