Axis Bank Shares Slide as Quarterly Profits Miss Market Expectations
Axis Bank shares dropped 4% following a quarterly profit miss. Discover how rising costs and RBI-mandated provisions impacted the lender's Q2 performance.
POLICY WIRE — New Delhi, India — Shares of Axis Bank experienced a sharp decline of over 4% on Monday, reacting to second-quarter financial results that failed to meet analyst projections.
The private lender reported a net profit of Rs 5,557.5 crore for the quarter ending September 2025, marking a 25% year-on-year decrease. This downturn was primarily driven by a one-time provision of Rs 1,231 crore related to two discontinued crop loan variants.
The bank implemented this additional standard asset provision following an advisory from the Reserve Bank of India (RBI). Management noted that these funds are expected to be written back into the profit and loss statement once the outstanding loans are recovered or closed by March 31, 2028.
Despite maintaining steady loan growth, the bank’s bottom line was pressured by elevated operating expenses and weaker other income. The stock fell to Rs 1,232 on the BSE as investors weighed the impact of these higher provisions against the bank’s underlying credit performance.
Reporting by Policy-Wire (PW)
