Axis Bank shares slip 2% after Q1 profit hit linked to RBI-driven bad loan spike
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Axis Bank shares declined 2.4% to hit the day’s low of Rs 1,072.60 on the BSE in Monday’s trade after the bank reported a weaker-than-expected Q1FY26 performance, impacted by a sharp increase in provisions for bad loans, as a result of an intervention by the Reserve Bank of India (RBI). The lender’s net profit for the June 2025 quarter fell 4% year-on-year to Rs 5,806 crore, missing market estimates. According to CNBC-TV18, regulatory intervention by the RBI played a role in the bank’s unexpected rise in bad loan provisions. RBI’s supervisory review reportedly required Axis Bank to revisit its asset classification and stress recognition practices, especially within its unsecured retail and small business loan books. Sources cited by CNBC-TV18 revealed that the RBI had flagged Axis Bank’s internal policies as overly lenient in identifying stressed loans, leading to under-recognition or delayed recognition of non-performing assets (NPAs). W...