Axis Bank Q4 profit marginally dips YoY to ₹7,071 crore; board recommends ₹1 dividend

Axis Bank on Saturday released its March quarter earnings report, which was broadly in line with Street expectations, supported by stable margins and improved asset quality. Ahead of the Q4 results, shares of the bank ended at ₹1,366.10, down 0.35%, with a market capitalisation of ₹4.24 lakh crore.

The bank posted a profit after tax (PAT) of ₹7,071 crore for the quarter, up 9% sequentially, aided by steady fee income growth and resilient operating performance. On a year-on-year (YoY) basis, profit declined 0.6% from ₹7,117 crore in Q4 FY25.

The private lender’s total income increased 1.9% YoY to ₹38,746.64 crore, while operating profit declined 6.87% to ₹10,013.42 crore during the quarter ended March 31, 2026, as per the earnings report filed with exchanges.

Net interest income (NII), the difference between interest revenues and interest expenses, rose 5% YoY to ₹14,457 crore in Q4 FY26, while its net interest margin stood at 3.62% for the quarter.

Fee income for Q4 FY26 grew 8% QoQ and 4% YoY to ₹6,561 crore. Retail fees grew 11% QoQ and 2% YoY, accounting for 74% of the bank’s total fee income.

For the full financial year 2025-26, NII stood at ₹56,048 crore, up 3% YoY, while fee income grew 9% YoY to ₹24,444 crore. Operating profit rose 2% to ₹42,817 crore, while net profit declined 7% YoY to ₹24,457 crore.

Amitabh Chaudhry, MD & CEO, Axis Bank, said the bank has closed the financial year on a strong note, with consistent progress across its strategic priorities. He added that while the bank remains confident about growth, it is closely monitoring evolving global macroeconomic and geopolitical conditions.

“While we enter the new financial year with confidence and optimism, focusing on building a more resilient franchise, we are conscious of the global macro and geopolitical situation shaping up and are closely watching it,” he said.

Balance sheet growth remained robust, with total assets rising 17% YoY to ₹18,86,850 crore as of March 31, 2026. Deposits grew 6% QoQ and 14% YoY, led by steady growth across current, savings, and term deposits.

Asset quality improved further, with gross NPAs declining to 1.23% and net NPAs to 0.37%. Credit costs moderated, reflecting tighter risk management and improved recoveries.

During Q4 FY26, the bank made a one-time provision of ₹2,001 crore, citing macroeconomic and geopolitical uncertainties. It clarified that the move is precautionary and does not indicate any deterioration in asset quality. As of March 31, 2026, cumulative provisions (standard and additional, excluding NPAs) stood at ₹15,473 crore.

The bank also reported continued momentum in its consumer and digital businesses, adding around 1 million credit cards during the quarter and maintaining a 14% market share in cards-in-force. CASA deposits grew 11% YoY and 7% QoQ, with the CASA ratio at nearly 40%, supporting a stable, low-cost funding base.

The bank’s board of directors has recommended a dividend of ₹1 per equity share with a face value of ₹2 for the year ended March 31, 2026, subject to approval by shareholders at the upcoming annual general meeting.