Axis Bank profit declines 26% as provisions spike

AXIS BANK ON Wednesday reported a 26.4% year-on-year (yo-y) fall in its net profit for the quarter ended September to %5,090 crore because of higher provisions.

- KSHIPRA PETKAR

Provisions and contingencies increased 61% on year. Bloomberg estimated the net profit for the third-largest private lender at %5,881 crore.

Following an RBI advisory, post its FY25 annual inspection, the bank in the reporting quarter made an additional onetime standard asset provision of $1,231 crore for two discontinued crop loan variants. This standard asset provision will be written back to the P&L when all the outstanding loans in those two variants are recovered or closed in normal course or by March 31, 2028, whichever is earlier.