Axis Bank: Growth momentum rebuilding

ASSET QUALITY TRENDS REMAIN REASSURING

- 

AXIS BANK IS going through a phase of repair and recalibration in its loan growth cycle, balancing near-term headwinds with medium-term structural improvements.In the second quarter of FY26, total advances rose 12% yo-y and 5% sequentially, supported by a recovery in wholesale banking activity and improving traction across more granular lending segments.

A notable strategic shift has been the steady expansion of the bank's small business banking, small and medium enterprise, and mid-corporate portfolios. Together, these segments now account for about ₹2.66 lakh crore of advances, or roughly 24% of total loans. This represents an increase of nearly 740 basis points over the past four years and underscores management's deliberate move towards portfolios offering higher risk-adjusted returns and greater diversification.

Retail credit