Axis Bank reported a second-quarter net profit of Rs 7,003 crore for the quarter ended September 30, marking an increase of 37.6 percent over the previous year. The net earnings came in slightly below the Bloomberg consensus estimate of Rs 7,180 crore, even after rising from Rs 5,089.64 crore recorded in the year-ago quarter. The private lender experienced a 12 percent year-on-year increase in net interest income, which climbed to Rs 15,371 crore during the three-month period. The net interest income surpassed the Bloomberg forecast of Rs 15,259 crore and advanced from the Rs 13,744.55 crore generated in the corresponding period of the previous year.
Axis Bank generated an operating profit of Rs 11,083 crore in the second quarter of financial year 2027, representing a 6 percent rise over the preceding year. Core operating profit registered a sharper increase of 11 percent year-on-year to reach Rs 10,998 crore during the same quarter. The net interest margin for the second quarter stood at 3.36 percent. Amitabh Chaudhry noted that the institution maintained its emphasis on expanding its franchise through innovation, operational execution, and institutional trust. Amitabh Chaudhry added that the bank enhanced digital payments and secure banking while accelerating its technology roadmap through artificial intelligence innovation and partnerships.
Advances by the bank expanded 23 percent year-on-year and 9 percent quarter-on-quarter, according to details disclosed in a regulatory filing. Deposits across the banking network increased 20.7 percent year-on-year and 5.8 percent on a sequential basis. The current account and savings account ratio contracted to approximately 36.5 percent, declining from roughly 39.8 percent recorded twelve months earlier. Asset quality metrics demonstrated improvement across headline ratios during the quarter under review. The gross non-performing asset ratio fell by 30 basis points from the year-ago period to 1.16 percent in the second quarter. The net non-performing asset ratio decreased by 9 basis points year-on-year to finish the quarter at 0.35 percent. The net slippage ratio dropped 30 basis points compared to the previous year to 0.75 percent.
During the second quarter of FY27, the net slippage ratio dropped to 0.75%.
Total provisions and contingencies for the second quarter amounted to Rs 1,694 crore, reflecting a drop of more than 50 percent from Rs 3,547.04 crore in the year-ago quarter. The provision outgo stood below the Bloomberg forecast of Rs 2,236.85 crore. Specific loan loss provisions accounted for Rs 1,564 crore of the total provisioning bill during the quarter. As of September 30, 2026, the lender held cumulative provisions of Rs 15,860 crore earmarked for standard and additional provisions outside of bad loans. The bank noted in a regulatory filing that these cumulative buffers remain separate from the provisions utilized in its provision coverage ratio calculations.
Axis Bank mobilized 10.62 billion dollars in foreign currency non-resident bank deposits by the close of September 30. A portion of these mobilized overseas funds was deployed to pay down non-retail term deposits, producing an 8.6 percent sequential contraction in wholesale term deposits. The bank also extended standby letters of credit totaling 4.69 billion dollars to other financial institutions against loans supported by FCNR deposits. Across the first half of financial year 2027, net interest income increased 10 percent year-on-year to Rs 30,018 crore. Fee income expanded 6 percent to Rs 12,536 crore during the six-month period. Operating profit for the first half rose 4 percent to Rs 22,742 crore, compared with Rs 21,928 crore posted during the first half of the preceding financial year. Core operating profit across the first half climbed 11 percent to Rs 22,120 crore from Rs 20,010 crore in the prior period. Net profit for the first half of the financial year increased 30 percent year-on-year to Rs 14,117 crore compared to Rs 10,896 crore achieved in the corresponding period of the previous year.
As of September 30, 2026, Axis Bank issued standby letters of credit totaling ₹449 billion under the Reserve Bank of India framework.
Excluding international branch leveraging loans totaling USD 4.57 billion as of September 30, 2026, gross advances would have expanded by 18.8% year-on-year.
