Axis Bank announced strong financial results for the second quarter of the 2027 fiscal year on Saturday, reporting a net profit of Rs 7,003 crore. This figure represents a 38% increase compared to the Rs 5,089 crore profit recorded in the corresponding quarter of the previous financial year. The bank’s positive performance was bolstered by a 12% year-on-year growth in net interest income, which climbed to Rs 15,371 crore during the period under review, with the net interest margin settling at 3.36%.
The lender’s regulatory filing highlighted a notable improvement in asset quality. The gross non-performing asset (GNPA) ratio was recorded at 1.16%, reflecting a 30 basis points reduction compared to the previous year. Similarly, the net NPA ratio saw a decline of 9 basis points to 0.35%, while the net slippage ratio dropped by 30 basis points to 0.75%. These metrics indicate a strengthening of the bank’s balance sheet over the past year.
Operational efficiency also remained a highlight for the bank during the quarter. Axis Bank’s operating profit grew 6% year-on-year to reach Rs 11,083 crore, while the core operating profit rose 11% to Rs 10,998 crore. Total advances saw significant momentum, growing 23% year-on-year and 9% sequentially. Regarding risk management, the bank reported provisions and contingencies of Rs 1,694 crore for the quarter, which includes specific loan loss provisions of Rs 1,564 crore.
As of September 30, 2026, the bank maintained cumulative provisions of Rs 15,860 crore earmarked for standard and additional categories, separate from the provisions included in its provision coverage ratio calculations. In the first half of the financial year (H1FY27), the bank recorded a 30% increase in net profit, totaling Rs 14,117 crore, compared to Rs 10,896 crore in the same period last year. During this six-month timeframe, the bank’s operating profit reached Rs 22,742 crore.
The bank also provided insights into its deposit management strategy. By the end of September, Axis Bank had mobilised $10.62 billion in FCNR (B) deposits. Some of these funds were utilised to reduce non-retail term deposits, contributing to an 8.6% sequential decrease in those liabilities. Additionally, the bank issued standby letters of credit to other financial institutions against loans backed by FCNR (B) deposits, amounting to $4.69 billion.
Reflecting on the quarterly results, Amitabh Chaudhry, MD & CEO of Axis Bank, noted the institution's commitment to evolving customer needs. He stated, “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.”
Looking ahead, the bank intends to continue leveraging its digital infrastructure and strategic collaborations to maintain its market position. The combination of rising core operating profit and decreasing bad loan ratios suggests a period of stable growth for the lender as it enters the second half of the fiscal year.
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