New Delhi, Oct. 16 -- Axis Bank's September-quarter results were widely expected to bear the brunt of the Reserve Bank of India's (RBI) monetary policy easing and change in stance, given that 72% of its advances are linked to floating rates.

In June, the RBI cut key lending rates by 50 basis points (bps) and shifted to a neutral stance from accommodative, pushing yields higher. This was seen as a double whammy for banks: net interest margins (NIMs) would bear the full impact of the rate cut, while trading gains would suffer from rising yields.

For Axis Bank, analysts had pencilled in a sequential NIM compression of 25-30 bps, even as higher "technical" expenses following its FY25 annual inspection continued to weigh on its reported asse...