Operating profit grew 11% YoY to ₹955 crore, even as operating expenses rose 5% to ₹1,785 crore. The cost-to-income ratio improved to 65.1% from 66.3% in the previous quarter.
Provisions for the quarter stood at ₹678 crore, compared with ₹639 crore in the previous quarter and ₹785 crore a year ago. The bank issued 3.3 lakh cards during the quarter, as per management commentary.On the balance sheet front, net advances grew 23% YoY to ₹1.14 lakh crore, led by strong traction in both retail and wholesale segments. Retail advances rose 20% YoY to ₹67,119 crore, while wholesale advances grew 28% to ₹47,112 crore.
Total deposits increased 25% YoY to ₹1.39 lakh crore, with CASA deposits rising 23% to ₹46,723 crore, taking the CASA ratio to 33.6%.
Asset quality improved meaningfully during the quarter, with gross NPA declining 43 basis points sequentially to 1.45% and net NPA easing 16 basis points to 0.39%. Credit cost stood at 65 basis points for the quarter. The bank also noted that the proportion of unsecured loans in its overall book declined sequentially.
Provision coverage ratio stood at 73.6%, while the bank remained adequately capitalised, with a capital adequacy ratio of 14.25% and CET-1 ratio at 12.77%.Commenting on the performance, Managing Director and CEO R Subramaniakumar said, “We delivered growth that meaningfully outpaced normalised industry trends.”
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On margins, the bank said the impact of the repo rate cut in December was reflected in Q4, while the benefit on cost of deposits is expected to come with a lag, which should help stabilise margins in the coming quarter.
On strategic developments, the bank said it has received approvals from the RBI and the Competition Commission of India for the proposed Emirates NBD investment, with SEBI and government approvals still awaited.
For FY26, net profit rose 18% YoY to ₹822 crore, while NII for the year declined 2% to ₹6,360 crore and operating profit stood at ₹3,299 crore. The bank proposed a dividend of ₹1 per share.
Shares of the bank ended nearly 3% higher at ₹321.65 on Friday, ahead of the results. The stock has surged over 71% in the last one year.
Also read: Axis Bank Q4: Profit at ₹7,071 crore beats estimates; NII misses, asset quality improves
