Axis Bank Ltd — Q2 FY26
Axis Bank reported a steady Q2 FY26 with PAT of INR 5,090 crore, though net interest margin declined to 3.73% due to rate cuts.
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Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
63%Questions answered4Evaded / deflected12Questions audited
Partial answer
High priority
Impact of credit risk draft circular and margin performance details.
Asked by Chintan Joshi, Autonomous
Gave directional view but no quantified impact on credit risk circular; margin details were specific.
no specific impact givendeferred to later assessment
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Question
Can I get some color from you on the credit risk draft circular? ... On margins, it feels like it's fallen less than I think you feared... Any more color would be helpful there.
Puneet Sharma, CFO
Directionally, net positive for us. ... the core part was managing the portfolio efficiently through the quarter. ... a 24 basis points uplift from the cost of funds.
Evasive
High priority
Relative PDs and capital impact under ECL for stressed products.
Asked by Chintan Joshi, Autonomous
Acknowledged principle but deferred detailed answer, no quantification.
deferred to later assessmentno specific numbers
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Question
the question was more about, you know, relative PDs and how you put capital against products like PL and CC... Does that impact the relative economics?
Puneet Sharma, CFO
higher the PD, higher the loss ... the higher is going to be the stage one, stage two provision ... Please allow us to make a more holistic assessment and come back to you.
Answered
Medium priority
Why credit cost high despite low net slippage?
Asked by Mahrukh Adajania, Nuvama
Explained specific reasons for high credit cost relative to slippage.
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Question
the net slippage is INR 280 crore and the credit cost is INR 270 crore odd. I just wanted to understand that a bit better.
Puneet Sharma, CFO
on a single loan account ... we've seen security erosion ... partly aging provision ... do not look at incremental provision cover to incremental slippage.
Answered
High priority
Outlook on margins and whether repricing pressure is over.
Asked by Mahrukh Adajania, Nuvama
Provided clear guidance on margin bottoming in Q3.
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Question
Any outlook on margins as in has the repricing been over or we'll just continue to see better deposit repricing from now on?
Puneet Sharma, CFO
Q3 is when we should expect a bottoming of margins. That response is subject to no further rate cuts.
Answered
High priority
Any one-off in NII, corporate loan yields, crop loan provisions, and PSLC cost.
Asked by Rikin Shah, IIFL Capital
Answered all sub-questions with specific numbers and explanations.
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Question
is there any one-off in the net interest income line item? ... on the corporate loan growth ... is it lucrative enough? ... crop loan provisions ... PSLC cost...
Puneet Sharma, CFO
No, there are no one-offs in the net interest margin for the quarter. ... INR 948 crore ... half ... charged to the current quarter. ... INR 1,231 crore translates to roughly a 5% cover...
Evasive
Medium priority
Will net technical slippages turn negative in coming quarters?
Asked by Rikin Shah, IIFL Capital
Refused to give quantitative guidance, only directional comment.
no guidance givendirectional only
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Question
net technical slippages, it has come off sharply ... Do you expect that this can potentially turn negative in the coming quarters?
Puneet Sharma, CFO
We do not want to give quarterly guidance on where the number would be. ... Directionally, the gross technical slippage number should decline.
Answered
Medium priority
Impact of higher RWA intensity on credit spreads and costs.
Asked by Harsh Modi, JPMorgan
Explained that RWA increase is funded by higher margins and capital accretion.
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Question
risk-weighted assets as a percentage of assets ... has gone up ... how do I see that showing up in either higher credit spreads and/or higher credit costs?
Puneet Sharma, CFO
The RWA is paying for itself. ... we have net accreted CET1 capital without an external fund raise.
Declined
Medium priority
When will weaker government deposit growth be offset by other areas?
Asked by Harsh Modi, JPMorgan
Explicitly refused to provide a timeframe.
no timeframe given
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Question
would you have a sense of how many quarters more will it take for the weaker growth in some of the government-related deposit accounts to be offset?
Puneet Sharma, CFO
We do not want to offer a comment or a timeframe by which the compression in government deposits would end.
Evasive
High priority
Nature of RBI observations leading to standard asset provision.
Asked by MB Mahesh, Kotak Securities
Declined to share RBI observations, only gave the provision amount.
confidentiality citedno details on observations
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Question
on this standard asset provision, if you could just kind of highlight what are the nature of observations that RBI had...
Puneet Sharma, CFO
I can't discuss specific RBI observations because they are confidential in nature. ... RBI directed the INR 1,231 crore number.
Answered
High priority
Why 5% provision on crop loans if no asset quality issue?
Asked by Suresh Ganapathy, Macquarie Capital
Explained that provision is static and due to declassification, not risk.
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Question
Suddenly going up to 5%, I mean, did the RBI perceive any risk? ... Why go to 5%?
Puneet Sharma, CFO
The instruction was to make INR 1,231 crore of provision. ... It is a provision that has been prescribed as a consequence of the declassification.
Answered
Medium priority
Are the discontinued crop loan variants unique to Axis?
Asked by Param Subramanian, Investec
Clearly stated that the product is widely offered.
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Question
Is this a product that you offered as unique to you? Do other players in the market also offer these products?
Puneet Sharma, CFO
all benchmarking analysis that we do in the market indicates that the product variant is widely offered in the market.
Answered
High priority
Why margins bottom in Q3 vs Q2 for other banks?
Asked by Kunal Shah, Citigroup
Provided specific reason (duration) and maintained consistent guidance.
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Question
When most of the banks are indicating that margins are bottoming out in Q2, is it like a lower CRR benefit ... or what you indicated in terms of the duration of assets and liabilities?
Puneet Sharma, CFO
the duration of our assets and liabilities are near matched in the 15, 18 months range. ... we are saying that quarter three is when we would expect a bottoming of margins.