Market Performance Snapshot
Axis Bank Q3 results landed at a time when markets are closely watching earnings quality, not just growth. The numbers tell a steady, measured story. No noise. No excess. Just a quarter that shows how the bank is managing scale, margins, and stress together.
For investors tracking Axis Bank Q3, the focus was clear—profit growth, asset quality movement, and balance sheet strength. The bank delivered on all three fronts, staying consistent rather than flashy.
Axis Bank Q3: What Changed This Quarter?
Axis Bank, India’s third-largest private sector bank, posted a 3% year-on-year rise in net profit for the quarter ended December 31, 2025.
- Net Profit: ₹6,490 crore
- Growth: 3% YoY
The rise may look modest at first glance, but it reflects stable operating performance in a quarter where credit costs and slippages were closely tracked across the sector.
Income and Margins Hold Firm
Operational income remained supportive during the quarter, driven by steady lending activity.
- Net Interest Income (NII): ₹14,287 crore
- NII Growth: 5% YoY
- Net Interest Margin (NIM): 3.64%
Margins stayed largely intact despite competitive pressures, pointing to disciplined balance sheet management.
Asset Quality: Small Gains, Clear Direction
One of the quieter positives in Axis Bank Q3 results came from asset quality trends.
As of December 31, 2025:
- Gross NPA: 1.40%
- Net NPA: 0.42%
This was an improvement from:
- Gross NPA: 1.46%
- Net NPA: 0.44% as of September 30, 2025
The movement may be incremental, but in a large loan book, even small shifts matter.
Slippages, Recoveries, and Write-offs Explained
Credit costs remained a key area to watch this quarter.
Here’s how the numbers stacked up:
- Gross Slippages: ₹6,007 crore
- Compared to ₹5,432 crore a year ago
- Net Slippages (adjusted for recoveries): ₹2,335 crore
- Retail contribution: ₹2,506 crore
At the same time, recoveries offered some cushion:
- Recoveries from written-off accounts: ₹799 crore
- Recoveries and upgrades from NPAs: ₹2,872 crore
- NPAs written off during the quarter: ₹3,275 crore
These figures show active balance sheet cleanup rather than passive stress carry-forward.
Provisioning: Cushion Remains Steady
Axis Bank maintained a conservative provisioning stance in Q3.
- Provision Coverage Ratio (PCR): 70%
- Same as September 2025
- Lower than 76% in December 2024
Additional provisioning details:
- Provisions & Contingencies: ₹2,246 crore
- Cumulative Provisions (Standard + Additional): ₹13,111 crore
This buffer continues to act as protection against future volatility.
Restructured Loans: COVID Book Keeps Shrinking
The COVID-related restructured loan book continued to decline.
- Outstanding restructured loans: ₹1,030 crore
- Share of gross customer assets: 0.08%
- Provision held: 17% (above regulatory requirement)
The gradual runoff here reflects stabilising borrower profiles.
Balance Sheet Growth Remains Healthy
Axis Bank’s scale continued to expand steadily during the quarter.
- Balance Sheet Size: ₹17,52,171 crore
- Growth: 15% YoY
Deposit growth stayed in sync:
- Total Deposits: Up 15% YoY
On the lending side:
- Total Advances: ₹11,59,052 crore
- Advance Growth: 14% YoY
Retail remained a large part of the mix:
- Retail Loans: ₹6,44,575 crore
- Retail Share of Advances: 56%
What the Management Said?
Commenting on the quarter, Axis Bank MD & CEO Amitabh Chaudhry highlighted the bank’s long-term focus on simplifying access to credit and building digital capabilities.
He spoke about strengthening platforms, empowering teams, and adapting to evolving customer behaviour—signalling continuity rather than course correction.
Axis Bank Q3: The Bigger Picture
The Axis Bank Q3 results reflect a bank operating in control mode—balancing growth with asset quality, and expansion with prudence.
There are no sharp spikes, no dramatic swings. Instead, the quarter shows:
- Stable profit growth
- Improving asset quality metrics
- Consistent balance sheet expansion
- Active management of credit costs
For those tracking quarterly trends rather than one-off surprises, Axis Bank Q3 fits neatly into a story of steady execution.
Summary
Axis Bank Q3 numbers highlight a calm, measured quarter marked by steady profit growth, improving NPAs, and consistent balance sheet expansion. The focus remained on discipline—managing margins, controlling stress, and strengthening the loan book without stretching risk.
Source: The Hindu
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