Axis Bank Q2 profit declines 26% YoY as provisions weigh; core metrics resilient

Axis Bank posted a 26% year-on-year decline in September-quarter net profit to about ₹5,090 crore, driven by higher provisions and one-offs, even as net interest income inched up and operating costs were contained. The lender underscored stable asset quality metrics and adequate capital buffers. Street focus remains on trajectory of margins amid deposit repricing, fee income normalization, and credit costs through H2. Shares nevertheless participated in today’s bank-led rally, with investors reassessing earnings quality and medium-term return profiles relative to private-bank peers.