Axis Bank Net Down 4% on Rise in Slippages

Higher slippages were attributed to changes made in asset-classification and income-recognition policies

- SUBRATA PANDA

Axis Bank, India's third-largest private-sector lender, on Thursday reported a 4 percent year-on-year (Y-o-Y) decline in net profit to ₹5,806 crore for the first quarter of 2025-26 (Q1FY26). The decline was attributed to a significant rise in slippages during the quarter, which led to higher loan loss provisions.

The higher slippages and consequently higher provisions were driven by changes made by the bank in its asset-classification and income-recognition policies.

"Prudent application of technical parameters for recognising slippages, and consequent upgrades impacted reported asset quality parameters, including provisions and contingencies for Q1FY26. Technical impact is largely restricted to cash credit and overdraft products, and one-time settled accounts," the bank said in a statement, adding that "technical impact" has adversely impacted the bank's net profit by ₹614 crore, return on assets (ROA) by 15 basis points (bps), and return on equity (ROE) by 1.4 per cent.