Axis Bank reported a slight decline in net profit for the quarter ended March 31, citing higher provisions and trading losses as primary factors behind the dip. The lender posted a net profit of ₹7,071 crore for the fourth quarter, down marginally from ₹7,118 crore in the same period last year.

Provisions surged 139% year-on-year to ₹3,522 crore, driven by a one-time additional provisioning buffer of ₹2,001 crore set aside to address potential risks stemming from geopolitical uncertainties related to the West Asia conflict. The bank also recorded a tax write-back of ₹580 crore during the quarter.

Net interest margin (NIM) contracted to 3.62% from 3.97% a year earlier. Operating profit declined 7% to ₹10,013 crore compared with ₹10,752 crore in the previous fiscal year’s corresponding period. This was impacted by a trading loss of ₹606 crore and higher operating expenses, which outweighed a 5% rise in net interest income.

Managing Director Amitabh Chaudhry described the one-time provision as a prudent and precautionary measure, emphasizing that it did not reflect any deterioration in the bank’s asset quality or adverse credit trends in its loan or investment portfolios.

For the full fiscal year 2026, Axis Bank’s net profit stood at ₹24,457 crore, down from ₹26,374 crore in the year prior. The bank’s advances grew 19% year-on-year to ₹12.34 lakh crore by the end of March, with retail loans contributing 55% of the total. Secured advances made up about 73% of the loan book.

Asset quality showed improvement, with the gross non-performing assets (NPA) ratio declining to 1.23% from 1.40% in the previous quarter. The net NPA ratio reduced to 0.37% from 0.42%. Gross slippages were reported at ₹4,709 crore, lower than ₹6,007 crore in the preceding quarter and ₹4,805 crore a year ago. The bank wrote off NPAs worth ₹3,096 crore during the quarter.

Deposits increased 14% year-on-year to ₹13.36 lakh crore. Chaudhry noted ongoing efforts to reduce the gap between credit and deposit growth.

The board declared a final dividend of ₹1 per equity share with a face value of ₹2, equating to a 50% payout for the fiscal year. It also approved plans to raise up to ₹20,000 crore through qualified institutional placement, preferential allotment, or issuance of American Depository Receipts or Global Depository Receipts. However, Chief Financial Officer Puneet Sharma indicated there are no current plans to raise equity capital during the ongoing financial year.