Axis Bank Q3 Profit Meets Estimates with Strong Asset Quality Gains

Axis Bank reported a solid set of numbers for the December quarter of FY26, with net profit aligning closely with market expectations. The lender’s focus on prudent risk management and portfolio cleanup has started yielding results, particularly in unsecured segments where stress had been evident earlier. Management highlighted meaningful improvement in the credit card book alongside early signs of stabilization in personal loans and microfinance portfolios. This progress is seen as a positive indicator of the bank’s ability to navigate a challenging macro environment while maintaining profitability.

Asset quality metrics showed encouraging trends during the quarter, reflecting the effectiveness of Axis Bank’s enhanced underwriting standards and proactive resolution efforts. Gross non-performing assets and net slippages remained under control, contributing to a healthier balance sheet outlook. Analysts noted that the stabilization in high-risk books like PL and MFI, combined with sustained growth in the secured lending portfolio, positions the bank well for future earnings resilience.

The December quarter performance comes amid a competitive banking landscape where unsecured lending continues to face regulatory scrutiny and economic headwinds. Axis Bank’s ability to deliver in-line profit while improving key quality indicators has been viewed positively by investors. The results reinforce confidence in the lender’s strategic shift toward balanced growth, digital transformation, and disciplined credit expansion.

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Looking ahead, Axis Bank is expected to sustain momentum through focused deposit mobilization, cross-selling initiatives, and further de-risking of the loan book. Market participants will closely watch the trajectory of unsecured portfolios in the coming quarters to gauge the sustainability of the recent asset quality gains. Overall, the Q3 update underscores the bank’s steady progress toward long-term stability and shareholder value creation.

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