Axis Bank Q2 PAT down 26% on higher operating expenses, muted core income growth

Private sector major Axis Bank on Wednesday kicked off the banking sector’s Q2FY26 earnings season, reporting a 26 per cent year-on-year (y-o-y) decline in net profit at ₹5,090 crore, on account of one-time standard asset provision, higher operating expenses (opex) and muted core income growth.

The lender’s net interest income (NII), or core income, grew 2 per cent y-o-y at ₹13,745 crore. Other income was down 1 per cent at ₹6,625 crore. Operating expenses rose 5 per cent y-o-y at ₹9,957 crore, largely on account of higher purchase of priority sector lending certificates (PSLCs).

Further, the lender said that following an RBI advisory post the bank’s FY25 annual inspection, it made an additional one-time standard asset provision of ₹1,231 crore for two discontinued crop loan variants.