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View Promises →Axis Bank Ltd — Q3 FY26
Axis Bank reported a steady Q3 FY26 with PAT of INR 6,490 crore, up 28% QoQ and 3% YoY.
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Axis Bank reported a steady Q3 FY26 with PAT of INR 6,490 crore, up 28% QoQ and 3% YoY. Deposits grew 15% YoY, outpacing loan growth of 14% YoY. NIM compressed 9 bps QoQ to 3.64% due to mix shift toward wholesale and liability mix. Retail asset quality is stabilizing, with credit card and personal loan portfolios showing improvement. Management reiterated its through-cycle NIM target of 3.8% and expects deposit growth to converge with credit growth over 15-18 months. Key risks include competitive pressure on deposit costs and potential margin headwinds from further rate cuts.
एक्सिस बैंक ने वित्त वर्ष 2025-26 की तीसरी तिमाही में 6,490 करोड़ रुपये का शुद्ध लाभ कमाया, जो पिछली तिमाही से 28% और पिछले साल से 3% ज़्यादा है। जमा में 15% और कर्ज में 14% की बढ़ोतरी हुई। ब्याज दरों में अंतर (NIM) 3.64% रहा, जो पिछली तिमाही से थोड़ा कम है, क्योंकि बैंक ने थोक और जमा मिश्रण पर ज़ोर दिया। रिटेल कर्ज, खासकर क्रेडिट कार्ड और पर्सनल लोन, की गुणवत्ता सुधर रही है। बैंक का लक्ष्य 3.8% NIM बनाए रखना है और उम्मीद है कि 15-18 महीनों में जमा और कर्ज की बढ़ोतरी बराबर हो जाएगी। मुख्य जोखिम: जमा पर ब्याज दरों में प्रतिस्पर्धा और ब्याज दरों में कटौती से मुनाफा कम होना।
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Deposit cost repricing may slow due to competitive pressures
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Read Transcript →Quarter Snapshot
Deposit growth (YoY)
15%
+15% YoY
Month-end total deposits grew 15% year-on-year, outpacing credit growth.
CASA ratio (QAB)
37%
-116 bps YoY
Quarterly average CASA ratio declined 116 bps year-on-year to 37%.
Cost of funds
Not explicitly stated
-39 bps YoY
Cost of funds declined 39 bps year-on-year, reflecting disciplined liability management.
Retail disbursement growth (YoY)
20%
+20% YoY
Retail disbursements grew 20% year-on-year, signaling future retail loan book rebalancing.
What Changed vs Last Quarter
NEW
Through-cycle NIM target of 3.8% reiterated
Management reaffirmed the 3.8% NIM target over the cycle, despite 125 bps of repo rate cuts.
NEW
Deposit growth to converge with credit growth in 15-18 months
CEO expects deposit growth to stabilize at similar levels as credit growth within 15-18 months, aided by sustained liquidity infusion.
NEW
Retail loan book rebalancing over planning horizon
Management expects to rebalance the loan mix to 58-60% retail, 23-25% wholesale, and balance SME over the planning horizon.
DROPPED
NIM to bottom in Q3 FY26
Assuming no further rate cuts, net interest margin is expected to bottom in Q3, with through-cycle stance at 3.8%.
DROPPED
Advances growth 300 bps above industry in medium term
Over 3-5 years with FY26 as base, advances are expected to grow 300 bps faster than industry.
DROPPED
One-time standard asset provision of INR 1,231 crore to reverse by March 2028
The provision is static and will be written back when loans are closed or by 31 March 2028, whichever is earlier.
NEW RISK
Deposit cost repricing may slow due to competitive pressures
Non-retail term deposit rates have started to inch up in Q4, potentially limiting further decline in cost of deposits.
NEW RISK
LCR neutrality under new guidelines may shift with deposit mix
New LCR rules from April 2026 are broadly neutral, but changes in deposit composition could alter outflow rates.
RISK GONE
Further one-off regulatory provisions
Management acknowledged past one-offs and cannot guarantee no future regulatory surprises, despite conservative stance.
RISK GONE
Government deposit compression
Government deposit balances continue to decline due to efficiency improvements, with no timeline for offset.
RISK GONE
ECL transition impact on capital
While initial assessment shows negligible impact, final circular could require higher provisions if PDs are elevated.
🤫 Topics management stopped discussing
Mentioned in Q1 FY25, Q2 FY25, Q2 FY26, Q3 FY25
Over 3-5 years with FY26 as base, advances are expected to grow 300 bps faster than industry.
Mentioned in Q1 FY25, Q2 FY25, Q3 FY25
Deposit growth will be a key constraint for advances growth in the short to medium term, given regulatory focus on CD ratio.
Mentioned in Q2 FY25, Q3 FY25
Retail slippages, largely from unsecured products, have increased 40-45 bps YoY. Management expects corrective actions to help but does not call a peak.
Mentioned in Q2 FY25, Q3 FY25
RBI draft circular restricts subsidiaries from doing overlapping business. Bank is evaluating implications; uncertainty remains.
Mentioned in Q2 FY25, Q3 FY25
Current LCR of 115% may fall closer to 100% under proposed norms. Bank has tools but final guidelines are awaited.
Fast read
Guidance and risk preview
Management reaffirmed the 3.8% NIM target over the cycle, despite 125 bps of repo rate cuts.
Non-retail term deposit rates have started to inch up in Q4, potentially limiting further decline in cost of deposits.
View Risks →