Mumbai, April 25 : Private lender Axis Bank on Saturday reported a 0.64 per cent drop in profitability for the March quarter (Q4) of FY26, with net profit dropped 0.64 per cent year-on-year (YoY) to Rs 7,071 crore.

The lender had posted a net profit of Rs 7,118 crore in the corresponding quarter of the previous financial year (Q4 FY25), according to its latest stock exchange filing.

The bankâ??s interest income showed healthy growth during the quarter, rising 4.7 per cent to Rs 32,724 crore from Rs 31,243 crore a year ago.

At the same time, interest expenses climbed 4.7 per cent year-on-year to Rs 18,267 crore, compared to Rs 17,432 crore in year-ago period.

Net Interest Income (NII), a key measure of a bankâ??s core earnings, stood at Rs 14,457 crore in Q4 FY26, marking a 5 per cent increase from the year-ago period. However, the Net Interest Margin (NIM) came in at 3.62 per cent, the lender said in its regulatory filing.

On the operational front, Axis Bank reported an operating profit of Rs 10,013 crore, while core operating profit stood slightly higher at Rs 10,619 crore.

Operating costs rose by 6 per cent year-on-year during the quarter, suggesting continued investment in business expansion and infrastructure.

Sequentially, the bank saw a stronger performance, with profit after tax (PAT) jumping 9 per cent compared to Rs 6,490 crore reported in the December quarter (Q3 FY26).

The bankâ??s Board of Directors has recommended a dividend of Re 1 per equity share for the financial year ended March 31, 2026.

The payout remains subject to shareholder approval at the upcoming Annual General Meeting.

The shares of the private lender closed Friday's trading session at Rs 1,362, down by Rs 7.6 or 0.55 per cent.

In last five days, the shares of the firm were down by Rs 8.6 or 0.63 per cent. In last one month, the shares were up by Rs 139.90 or 11.45 per cent.

/IANS