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.
neutral
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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.
71%Questions answered1Evaded / deflected12Questions audited
Answered
High priority
Confidence in 3.8% NIM guidance and impact of corporate loan growth on NIM.
Asked by Chintan Joshi, Autonomous Research
Management directly reaffirmed the 3.8% NIM guidance and explained it is rate cycle agnostic.
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Question
Can I please start with the 3.8 NIM guidance? ... is that something you're fairly confident about, or would you like to caveat that target with any kind of market dynamics that need to play out for you to achieve that target? ... how should we think about this impacting your NIMS on mixed effects?
Puneet Sharma, CFO
3.8%, we remain confident of. It is rate cycle agnostic, which is why we say it's a through cycle NIM guidance. We are not walking away from that even today, despite the 125 basis points rate cut that we've seen.
Answered
High priority
Clarification on Amitabh's Davos comment about 18-24 months for deposit growth.
Asked by Chintan Joshi, Autonomous Research
CEO provided a detailed explanation of the timeline and reasoning behind the deposit growth outlook.
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Question
Amitabh, at Davos, you said it will take 18-24 months to return to deposit growth momentum. Could you please elaborate on that?
Amitabh Chaudhry, MD & CEO
I'm hoping that in the next 15-18 months, the deposit growth will stabilize at similar levels as credit growth because there is no option. ... given what is happening on a geopolitical basis, it's very difficult to say that things can stabilize that quickly.
Answered
High priority
LCR level and sustainability of deposit growth momentum.
Asked by Mahrukh Adajania, Nuvama Institutional Equities
Management provided specific LCR range and detailed deposit growth drivers, acknowledging continued work needed.
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Question
Firstly, on LCR, so your LCR has dropped. If you could explain the monthly or the average LCR ... And my second question is really on deposit growth ... we've beaten the sector over the last two quarters. Will we be able to continue the same pace?
Neeraj Gambhir, Executive Director; Munish Sharda, Executive Director
We have been broadly in 115%-120% range for the last several quarters. ... On deposit, thank you for acknowledging. We've been number one better than the industry. ... we are confident that our retail deposit momentum ... we have a lot of work to do still.
Partial answer
Medium priority
Whether staff cost reversal makes this quarter's expense a new base.
Asked by Mahrukh Adajania, Nuvama Institutional Equities
Management explained components but did not quantify the reversal amount, leaving ambiguity about the base.
no quantification of reversal impact
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Question
On OPEX, if at all, there is a reversal on employee expenses because the number looks too low, or should this be the new base and we work upon building upon this base only?
Puneet Sharma, CFO
The reduction in staff cost has two variables: an absolute reduction in headcount quarter-on-quarter, which is permanent in nature, and there is a reversal of staff expenses that are no longer required to be paid. ... the staff expenses no longer required to be paid would not have changed the direction of the staff cost improvement.
Partial answer
Medium priority
Drivers of current account growth and sustainability of borrowings.
Asked by Rikin Shah, IIFL Capital Services Limited
Management answered current account drivers but did not address the borrowings sustainability question.
borrowings question not addressed
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Question
The first one is on the liabilities. So my question is specific on the current account. We have seen a decent acceleration even on average basis. So what's driving that, and how do you think about its sustainability? Second part to that is on the borrowings as well.
Neeraj Gambhir, Executive Director
On your question around current accounts, I think it's a combination of a few things. One, we are continuing to see deepening of our existing customer base relationship driven by the tech stack and the technology investment that we have done on corporate banking side.
Partial answer
High priority
Timing of TD repricing and remaining juice on cost of deposits.
Asked by Rikin Shah, IIFL Capital Services Limited
Management gave directional guidance but did not quantify remaining repricing benefit, citing competitive pressures.
no specific quantification of remaining repricing
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Question
This quarter, the improvement in cost of deposit was a bit slower than some of the other peers. Assuming no further rate actions, Puneet, when do you think our TD repricing gets over and how much more juice is left on cost of TD side?
Puneet Sharma, CFO
We don't give out the proportionality of the book to be repriced, but the shorter-term book has entirely been repriced as we stand. ... non-retail term deposit rates in quarter four have started to inch up, and consequently, the repricing benefit on deposits to the fullest extent of the lag book may not come through.
Answered
High priority
Reason for negative standard loan provisions and credit cost direction.
Asked by Rikin Shah, IIFL Capital Services Limited
Management explained the reason for negative provisions and quantified the amount, and gave directional credit cost view.
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Question
The standard loans provision were negative in this quarter. What's driving that? And given that excess of technical slippages, the credit costs were only 63 basis points this quarter, so how should we think about the direction here on?
Puneet Sharma, CFO
On the standard asset negative is effectively the negative in the standard assets provision for the current quarter is driven by the fact that there were sectors that we had marked as stressed previously where, given the stabilization of the overall loan book, we don't see as stressed. ... It's about INR 128 crore.
Answered
Medium priority
PSL compliance status and impact of new LCR guidelines on deposit strategy.
Asked by Jai Mundhra, ICICI Securities
Management provided clear status on PSL and detailed analysis of LCR guideline impact, concluding neutrality.
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Question
One is on PSL. The PSL compliance, how are you placed? ... Number two is deposit and LCR put together ... the new LCR guideline would be helpful in pursuing the current deposit strategy without compromising on the runoff rates.
Subrat Mohanty, Executive Director; Neeraj Gambhir, Executive Director
On the PSLC strategy, see, we've not got any RIDF allocation over the last four years or so. ... We feel fairly confident given how we have focused on the Bharat Banking part of the business. ... On LCR ... our current estimate is that ... we are broadly neutral in terms of these pluses and minuses effective 1st of April.
Evasive
Medium priority
Inorganic opportunities and capital adequacy for potential M&A.
Asked by Abhishek Murarka, HSBC Securities & Capital Markets
Management acknowledged looking but gave no specifics on opportunities or capital requirements, deflecting with generalities.
no specific opportunities mentionedvague on capital needs
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Question
I think the first question is basically on any kind of inorganic opportunity that you see out there, especially something which can give a sort of lasting push to your NIM, ROA, PSL compliance ... would you need additional capital if this kind of an opportunity were to arise?
Subrat Mohanty, Executive Director
On the inorganic opportunity, I mean, we continue to be looking at what opportunities are available in the market. But given the size of possible opportunities ... I don't think there will be any capital requirement given the set that is available in that kind of an area.
Partial answer
Medium priority
Importance of LDR vs LCR/NSFR and regulator's view.
Asked by Abhishek Murarka, HSBC Securities & Capital Markets
Management gave internal view on LDR but avoided commenting on regulator's stance, leaving part of question unanswered.
did not directly address regulator's view
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Question
how do you think about LDR? ... as we use LCR, NSFR more and more to manage reserves, is that becoming more important than really looking at LDR, or is the regulator looking at both?
Subrat Mohanty, Executive Director
On your second question on LDR, see, over the last 6 quarters or so, this is seventh, we have been between about 90%-93% LDR ... Our general sense right now is that as a metric, the metric served its purpose. Right now, possibly the focus on the metric is a bit different than what it was a year back.
Answered
High priority
Corporate growth drivers (volume vs value) and credit card decline reason.
Asked by Piran Engineer, CLSA
Management provided specific sector drivers for corporate growth and explained card decline as seasonal, with no evasion.
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Question
Just firstly, corporate growth, if you could give some more flavor coming from volume or value. ... Secondly, a little bit on credit cards. Credit cards, the declined QoQ, is it simply an end-of-period thing that last quarter was good due to an early festive season?
Vijay Mulbagal, Group Executive; Arnika Dixit, President and Branch Banking Head
We are being very selective about the growth. It's being largely powered by the strong client engagement ... In terms of sectors, primarily led by power, corporate real estate, diversified conglomerates. ... On the card side, I think it's a phenomena that we've seen across the sector post the festive demand rundown.
Partial answer
High priority
Credit cost gap vs peers and M&A rumors regarding MFI.
Asked by Adarsh Parasrampuria, Enam Holdings
Management declined M&A comment and gave only stabilization data without addressing the gap vs peers directly.
M&A question declinedcredit cost gap not directly addressed
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Question
First is with things settling down on unsecured and retail, on credit cost, we did see some gap versus peers getting created ... do you expect to bridge the gap you've had maybe in the last couple of years? ... And my second question is, Amitabh, if you can just give us a few rumors regarding the M&A, regarding a large listed MFI M&A.
Amitabh Chaudhry, MD & CEO; Puneet Sharma, CFO
I don't know what M&A you're referring to. We don't comment on any M&A. We are not in any position to discuss any M&A at this point in time. ... Retail asset quality stabilization is what we called out Q4 for cards, Q2 for PL. The numbers are visible on slide 44-45 for you to see.