Mumbai, October 17 (TNA) Private-sector lender Axis Bank reported a 37.6% year-on-year rise in standalone net profit to ₹7,003.28 crore for the second quarter of financial year 2026–27, compared with ₹5,089.64 crore in the same period last year.
Consolidated net profit rose 39.4% to ₹7,704.67 crore during the quarter ended September 30, 2026, according to the bank’s regulatory filing. The lender’s net interest income (NII) increased 12% year-on-year to ₹15,371 crore, compared with ₹13,771 crore a year earlier. NII also rose 5% sequentially from ₹14,646 crore in the June quarter.
Axis Bank attributed the growth in profit to stronger core income, healthy credit expansion and a decline in provisions. Provisions fell 52% year-on-year during the quarter, supporting the improvement in bottom-line performance.
Asset quality improves
The bank’s gross non-performing asset (GNPA) ratio improved to 1.16% as of September 30, down from 1.46% in the year-ago period and 1.28% at the end of the previous quarter. The net NPA ratio stood at 0.35%, declining from 0.44% a year earlier and 0.39% in the June quarter. The improvement indicated a reduction in stress across the lender’s loan book.
The bank’s net interest margin for the quarter stood at 3.36%. Its core operating profit was ₹10,998 crore, representing an 11% year-on-year increase, according to the bank’s quarterly results.
Business growth
Axis Bank’s advances grew 23% year-on-year, while deposits increased 21% during the quarter. The growth reflected continued expansion in the lender’s retail, corporate and small-business banking segments.
Despite the strong year-on-year rise in profit, the results were below some market expectations. Analysts had anticipated a higher profit, and the shortfall could influence investor sentiment when the bank’s shares trade next.
Despite the strong year-on-year rise in profit, the results were below some market expectations. Analysts had anticipated a higher profit, and the shortfall could influence investor sentiment when the bank’s shares trade next.
Axis Bank’s quarterly performance comes amid a broader improvement in asset quality reported by several large Indian banks. Lower credit costs and stronger interest income have supported profitability across the banking sector in the September quarter.
Key figures
• Standalone net profit: ₹7,003.28 crore, up 37.6% year-on-year.
• Consolidated net profit: ₹7,704.67 crore, up 39.4%.
• Net interest income: ₹15,371 crore, up 12%.
• Gross NPA: 1.16%, compared with 1.46% a year earlier.
• Net NPA: 0.35%.
• Core operating profit: ₹10,998 crore, up 11%.