Axis Bank , India's fourth-largest private lender by market value, posted an unexpected drop in first-quarter profit on Thursday as its bad loans surged after a one-time industry benchmarking exercise.

Axis Bank reported a 4% YoY decline in Q1FY26 net profit to ₹5,806 crore, driven by a sharp rise in provisions linked to a regulatory-triggered overhaul of its asset classification norms. The Reserve Bank of India had flagged lenient stress recognition practices,

Axis Bank Q1FY26 net profit falls to Rs 5,806 crore as slippages surge and provisions rise; "technical impact" weighs on asset quality and return ratios