Axis Bank Profits Surge 23% to ₹7,114 Crore as Asset Quality Improves

Axis Bank Profits Surge 23% to ₹7,114 Crore as Asset Quality Improves​

Axis Bank has reported a robust financial performance for the April-June quarter of FY27, showcasing a significant 23 percent year-on-year rise in standalone net profit. The private sector lender posted a profit of ₹7,114 crore, marking a substantial leap from the ₹5,806 crore recorded during the same period last year.

This growth was primarily propelled by steady operating performance and an improving asset quality profile. The bank demonstrated its operational strength with core operating profits rising 10 percent year-on-year to reach ₹11,122 crore.

Robust Growth in Net Interest Income and Fee Revenue​

The bank's bottom line was supported by a rise in net interest income (NII) to ₹14,646 crore, up from ₹13,560 crore in the previous year. This reflects an 8 percent growth in the difference between interest earned and interest paid, with a net interest margin (NIM) standing at 3.46 percent for the quarter.

On the non-interest side, fee income rose 7 percent to ₹6,156 crore, while total non-interest income reached ₹6,735 crore. These figures highlight a diversified revenue stream that continues to bolster the bank's overall profitability and market standing.

Significant Strengthening of Asset Quality Indicators​

A key highlight of the quarterly report is the marked improvement in the bank's asset quality. The gross non-performing assets (GNPA) ratio declined to 1.28 percent as of June 30, 2026, compared to 1.57 percent a year earlier. Furthermore, the net NPA ratio saw an improvement from 0.45 percent to 0.39 percent.

Management noted that gross slippages for the quarter stood at ₹5,566 crore, a notable decrease from the ₹8,200 crore reported in the year-ago period. The net credit cost also declined to 0.63 percent, while the provision coverage ratio remained steady at 70 percent.

Strategic Expansion Across Loan Portfolios and Deposits​

Axis Bank saw substantial growth across its balance sheet, which expanded 20 percent year-on-year to ₹19.22 lakh crore. Total deposits rose 18 percent to reach ₹13.73 lakh crore, while net advances grew by 19 percent to ₹12.62 lakh crore.

Growth was particularly visible in the corporate and SME segments. Corporate loans surged 38 percent, while SME advances saw a significant rise of 25 percent. Retail loans also contributed to the growth with an 8 percent increase from a year earlier.

Strong Capital Position and Provisioning Strategy​

The lender maintains a fortified capital position, with its capital adequacy ratio under Basel III standing at 16.67 percent. Additionally, the CET-1 ratio was reported at 14.64 percent as of June 30, 2026. The bank also identified an additional capital cushion of approximately 52 basis points from provisions excluded from regulatory capital calculations.

Regarding risk management, provisions and contingencies for the quarter were recorded at ₹2,223 crore, which includes specific loan loss provisions of ₹2,079 crore. Importantly, the bank maintained a one-time provision of ₹2,001 crore created in the previous quarter to buffer against macroeconomic and geopolitical uncertainties, noting no drawdown during the June quarter.

Market Performance Relative to Benchmarks​

Ahead of the announcement, Axis Bank shares appreciated 1.6 percent on Friday to close at ₹1,328.5 on the NSE. The stock has demonstrated resilient performance with a year-to-date gain of 4.3 percent. This performance stands in sharp contrast to the benchmark Nifty 50 index, which has faced a decline of 6.9 percent during the same period.