MUMBAI: Axis Bank’s net profit slipped 4% year-on-year to Rs 5,806 crore in the quarter ended June 2025, dragged down by a sharp rise in provisions. The higher provisions were due to a one-off accounting adjustment, which the bank described as a “technical impact” or an internal recalibration of its bad loan classification.This adjustment, applied to cash credit, overdraft products, and one-time settled accounts, resulted in Rs 2,709 crore of fresh slippages. That alone triggered additional provisions of Rs 821 crore. Without this, total provisions for the quarter would have been Rs 3,127 crore instead of Rs 3,948 crore. The bank noted that this hit does not signal a real decline in asset quality, calling it a “prudential application” of regulatory guidelines.The revised policy led to gross non-performing assets rising by 29 basis points quarter-on-quarter, to 1.57%. Net NPAs rose by 12 basis points to 0.45%. While the headline profit was dented by a technical recalibration, the underlying growth in revenue, loan book, and fee income paints a more balanced picture.
