Axis Bank reported its second-quarter results today. The bank’s net profit stood at Rs 5,090 crore, a decline of 26.42% year-on-year. The net profit was Rs 6,917.57 crore in the same quarter of the previous year (Q2FY25). On a sequential basis, the bank saw a decline of 12.34% in net profit from Rs 5,806.14 crore in Q1FY26.

Net Interest Income (NII) stood at Rs 13,744 crore, increased 2% year-on-year and 1% QoQ, with Net Interest Margin (NIM) at 3.73%.

Here are key highlights from Q2FY26.

1. Total income rises marginally in Q2

The bank’s total income stood at Rs 37,594.81 crore during the quarter, up slightly from Rs 37,141.71 crore a year ago.

2. Axis Bank’s asset quality stable

Gross non-performing assets (GNPA) stood at 1.46%, compared with 1.44% in the same quarter last year and 1.57% in the previous quarter (Q1FY26). Net non-performing assets (NNPA) stood at 0.44%, compared with 0.45% in Q1FY26 and 0.34% a year ago.

3. CASA ratio stood at 40%

Total deposits rose 11% year-on-year to Rs 12.03 lakh crore, while advances grew 12% to Rs 11.17 lakh crore. Within deposits, term deposits rose 12%, while current and savings accounts grew 13% and 6%, respectively. The CASA ratio stood at 40% on a month-end basis.

4. RBI advisory prompts Rs 1,231 crore provision

in the Q2 release the company noted that, Axis Bank made a one-time standard asset provision of Rs 1,231 crore for two discontinued crop loan variants following an advisory from the Reserve Bank of India (RBI) after its FY25 inspection.

The bank said customer terms remain unchanged and the provision will be written back by March 2028 or earlier as loans are recovered. “This standard asset provision will be written back to the P&L when all the outstanding loans in the two discontinued product variants are recovered or closed in normal course or by March 31, 2028 [subject to any residual outstanding loan accounts on that date being closed), whichever is earlier.”

“No divergence in asset quality or NPA provisioning was identified in the RBI’s annual inspection,” the bank said in its filing.

5. Axis Bank strengthens position in UPI and credit cards

Axis Bank noted that it continued to strengthen its digital and payments business. It maintained a 37% market share in UPI payments by volume and 35% by value. The bank also crossed 15 million credit cards in force, after issuing over one million new cards in the quarter, giving it a 14% market share.

Digital transactions accounted for 97% of individual customer transactions, while its Axis Mobile app remained among the world’s top-rated banking apps with 15 million monthly active users.