Noida, Oct 17 (APAC Media): Axis Bank on Saturday, reported a 37.6% year-on-year increase in net profit to ₹7,003 crore for the second quarter of FY27, up from ₹5,089 crore in the corresponding quarter of the previous financial year.
Axis Bank’s net interest income (NII), which represents the difference between interest earned and interest paid, rose 12% year-on-year to ₹15,371 crore in the September quarter. The bank’s net interest margin (NIM) stood at 3.36%, rising to 3.47% after excluding the impact of foreign currency non-resident (FCNR-B) deposits.
Meanwhile, operating profit rose 6% year-on-year to ₹11,083 crore, while core operating profit increased 11% to ₹10,998 crore. Other income, however, declined 1% to ₹6,531 crore, whereas fee income grew 6% to ₹6,381 crore during the quarter.
“As customer expectations continue to evolve, our focus remains on building a franchise that combines innovation, trust and execution at scale. This quarter, we built on our leadership in digital payments and secure banking while advancing our technology agenda through AI-driven innovation and strategic partnerships. We expanded our reach, enhanced customer propositions, invested in talent, and deepened our contribution to communities. Together, these efforts reflect our commitment to creating long-term value for our customers, stakeholders and the broader economy,” Amitabh Chaudhry, MD & CEO, Axis Bank, said.
Asset quality improves in Q2FY27.
Axis Bank reported an improvement in asset quality during the September quarter, with its gross non-performing asset (GNPA) ratio declining 30 basis points (bps) year-on-year to 1.16%. The net non-performing asset (NNPA) ratio also fell by 9 bps to 0.35%.
Gross slippages declined to ₹4,762 crore in Q2FY27, compared with ₹5,566 crore in the preceding quarter and ₹5,696 crore in the corresponding period last year. The net slippage ratio improved by 30 bps year-on-year to 0.75%.
The bank’s annualised net credit cost stood at 0.45%, down 28 bps from a year earlier and 18 bps sequentially.
Meanwhile, the provision coverage ratio remained unchanged at 70% compared with both the previous quarter and the year-ago period.
Provisions and contingencies status
Axis Bank reported provisions and contingencies of ₹1,694 crore for Q2FY27, including ₹1,564 crore towards specific loan-loss provisions.
As of September 30, 2026, the lender held ₹15,860 crore in provisions against standard assets and additional provisions outside those maintained for non-performing assets (NPAs). These provisions were over and above the NPA-related provisions considered in calculating the provision coverage ratio.
Term Deposits Grow 27%; CASA Ratio at 36%
Axis Bank’s advances increased 23% year-on-year and 9% quarter-on-quarter to ₹13.74 lakh crore as of September 30, 2026.
Retail loans grew 16% year-on-year to ₹7.40 lakh crore, accounting for 54% of net advances. Advances to small and medium enterprises (SMEs) rose 25% to ₹1.65 lakh crore, while corporate lending registered growth of 34%.
Total deposits increased 21% year-on-year and 6% sequentially to ₹14.52 lakh crore on a month-end basis. Term deposits grew 27%, while current account deposits rose 7% and savings account deposits increased 12%.
The current account and savings account (CASA) ratio stood at 36%. The bank’s cost of funds also declined by 8 bps compared with the corresponding period last year.
Extra Provisions Provide 49 bps Capital Cushion
Axis Bank’s capital adequacy ratio stood at 16.27% as of September 30, 2026, while its common equity tier-1 (CET-1) ratio was 14.61%. The lender strengthened its CET-1 ratio by 23 bps during the first half of FY27.
Additionally, the bank held ₹8,006 crore in provisions over and above those reflected in its reported capital adequacy ratio. These additional provisions provided a capital cushion equivalent to approximately 49 bps.
Axis Bank H1FY27 Profit Jumps 30%
For the first half of FY27, Axis Bank’s net profit rose 30% year-on-year to ₹14,117 crore, compared with ₹10,896 crore in H1FY26.
Net interest income (NII) increased 10% to ₹30,018 crore, while fee income grew 6% to ₹12,536 crore. Operating profit rose 4% to ₹22,742 crore from ₹21,928 crore in the year-ago period.
Core operating profit registered stronger growth, climbing 11% to ₹22,120 crore against ₹20,010 crore in the first half of the previous financial year.
-ENDS–
Disclaimer: This article is for informational purposes only and is based on publicly available information. APAC Media is not responsible for investment decisions or losses. Please conduct your own research or consult a financial adviser before investing.
Also Read:
Brent Crude Hits $110 as Iran Escalates Hormuz Attacks, Ukraine Targets Russian Refineries
Live MCX Market Watch Index
