RBI intervention behind Axis Bank’s Q1 bad loan spike and technical hit
Published on 18/07/2025 08:59 PM
RBI intervention behind Axis Bank’s Q1 bad loan spike and technical hitAxis 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, prompting the bank to tighten its NPA framework, especially in unsecured retail and small business loans.By Ritu Singh July 18, 2025, 8:59:51 PM IST (Published)4 Min ReadAxis Bank’s unexpected spike in bad loans and provisions in Q1 FY26 that dented its profitability was not entirely the result of the bank’s own internal decisions. CNBC-TV18 has learnt that a regulatory intervention by the Reserve Bank of India (RBI) prompted the bank to revisit its asset classification and stress recognition practices, particularly in its unsecured retail and small business loan portfolios.Continue Reading with CNBC-TV18 Access MembershipPriority Access and Networking: CNBC-TV18's flagship events Interaction with CNBC-TV18's journalists Webinars & LIVE Q&As with India Inc. Leaders Exclusive CNBC-TV18 studio & newsroom tours Premium business insights, expert opinions & analysis Curated lifestyle privileges & offers