Axis Bank's net profit fell 26% YoY in Q2 FY26 due to higher provisions, lower margins, and rising costs.

Axis Bank reported a 26% year-on-year decline in net profit for Q2 FY26, citing higher provisions, shrinking net interest margins, and rising costs. Despite a 2% rise in net interest income and stable asset quality, with gross and net NPAs at 1.46% and 0.44%, the bank faced pressure from deposit repricing and elevated credit costs. Loan growth reached 12% annually, driven by retail and SME segments, while digital banking continued to expand, with 97% of customer transactions digital. Brokerage estimates had projected a 9.5% to 23% profit drop, with NIM expected to fall to 3.59%.