“We are positive about the recent GST cuts and CRR reduction flowing through the banking system,” said Amitabh Chaudhry, MD & CEO, Axis Bank. “We’re seeing some positive signs on the retail payout front, and we’ve already seen strong growth in corporate lending. It’s still early days and we’ll have to wait and see if the impact of the VAT cuts takes hold.”
Provisions and contingencies for the September quarter stood at ₹3,547 crore, up 61% from ₹2,204 crore. The bank has also made a default provision for assets of ₹1,231 crore following advice from the Reserve Bank of India (RBI) after its annual inspection in FY25. These include two discontinued variants of crop loans.
“These loans were extended to farmers and categorized as priority sector loans. The bank has discontinued these two loan products,” said Puneet Sharma, chief financial officer, Axis Bank. “These loans are fully secured and we do not expect credit costs to increase significantly as a result of these loans. The default asset provision will be reversed prior to March 31, 2028, or when the loan closes, whichever comes first.”
The domestic net interest margin (NIM) stood at 3.8% at the end of the September quarter, compared to 4.1% in the same period a year ago.
The gross non-performing credit ratio for the quarter under review was 1.5%, compared to 1.4% a year earlier. While the net non-performing credit ratio stood at 0.4%, compared to 0.3% in the previous year period. Gross slippages during the quarter stood at ₹5,696 crore, compared to ₹8,200 crore in Q1FY26 and ₹4,443 crore in Q2FY25.
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