Axis Bank, India’s third-largest private sector lender, reported a 38 per cent year-on-year rise in net profit to ₹7,003 crore for the second quarter of 2026-27 (Q2FY27), supported by healthy growth in net interest income (NII) and a decline in provisions.
The lender’s NII — the difference between interest earned and interest expended — grew 12 per cent year-on-year to ₹15,371 crore during the quarter.
Net interest margin (NIM) stood at 3.36 per cent, compared with 3.55 per cent in the year-ago quarter. Excluding the impact of foreign currency non-resident (FCNR-B) deposits, NIM stood at 3.47 per cent.
Other income slipped 1 per cent year-on-year to ₹6,531 crore, as trading income fell sharply to ₹85 crore from ₹498 crore a year earlier.
Fee income, which forms a substantial component of other income, rose 6 per cent to ₹6,381 crore. The bank said granular fees accounted for 90 per cent of overall fee income.
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Provisions and contingencies dropped 52 per cent year-on-year to ₹1,694 crore in the quarter.
Annualised credit cost declined to 0.45 per cent as asset-quality indicators improved.
The gross non-performing asset (GNPA) ratio declined to 1.16 per cent as of September 30, 2026, from 1.28 per cent a quarter earlier.
The net NPA ratio fell to 0.35 per cent from 0.39 per cent.
Gross slippages declined to ₹4,762 crore during Q2FY27, compared with ₹5,696 crore in the year-ago quarter and ₹5,566 crore in the preceding quarter.
Recoveries and upgrades from NPAs stood at ₹2,380 crore, while the bank wrote off NPAs worth ₹2,729 crore during the quarter.
Its provision coverage ratio, excluding prudential write-offs, remained at 70 per cent.
Advances grow 23%, deposits up 21%
The bank’s advances grew 23 per cent year-on-year and 9 per cent sequentially to ₹13.74 trillion as of September 30, 2026.
Retail loans rose 16 per cent to ₹7.4 trillion, accounting for 54 per cent of net advances.
Small and medium enterprise (SME) loans increased 25 per cent to ₹1.65 trillion, while corporate advances grew 34 per cent to ₹4.69 trillion.
Deposits increased 21 per cent year-on-year to ₹14.52 trillion at the end of September.
Term deposits rose 27 per cent year-on-year on a month-end basis, while current account and savings account (CASA) deposits grew 7 per cent and 12 per cent, respectively.
The CASA ratio stood at 36 per cent at the end of the quarter, compared with 40 per cent a year earlier.
The bank reported FCNR-B deposits of ₹1.018 trillion, including deposits backed by advances from its international branches and standby letters of credit.
The bank’s capital adequacy ratio stood at 16.27 per cent at the end of September, while its common equity tier-1 (CET-1) ratio was 14.61 per cent.
The board of directors also appointed former whole-time member of the Securities and Exchange Board of India (Sebi) Ananth Narayanan as an additional independent director of the bank, effective October 19, 2026.