Axis Bank’s standalone net profit rose 37.6% year on year to ₹7,003 crore in the quarter ended 30 September 2026 (Q2FY27), primarily because provisions and contingencies dropped 52.2% to ₹1,694 crore. Net interest income, loan and deposit growth, and improving asset quality also supported the result, although margins narrowed and trading income fell sharply.
Axis Bank Q2FY27 results at a glance
| Metric | Q2FY27 | Year-on-year change | Context |
|---|---|---|---|
| Standalone net profit | ₹7,003 crore | Up 37.6% | ₹5,090 crore in Q2FY26 |
| Provisions and contingencies | ₹1,694 crore | Down 52.2% | ₹3,547 crore a year earlier |
| Net interest income | ₹15,371 crore | Up 12% | Core lending income |
| Net interest margin | 3.36% | Down from 3.55% | 3.47% excluding FCNR(B) effects |
| Advances | ₹13.74 trillion | Up 23% | Also up 9% sequentially |
| Deposits | ₹14.52 trillion | Up 21% | CASA ratio was 36% |
| Gross NPA | 1.16% | Improved | 1.28% in the previous quarter |
| Net NPA | 0.35% | Improved | 0.39% in the previous quarter |
The bank’s official corporate-announcement index lists the Q2FY27 financial statements and press release/investor presentation as posted on 17 October 2026.
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Why did profit rise 37.6%?
Lower provisions provided the largest boost
Provisions and contingencies fell from ₹3,547 crore in Q2FY26 to ₹1,694 crore, a reduction of 52.2%. That ₹1,853 crore year-on-year decline materially lifted pre-tax earnings. Profit before tax increased 36.8% to ₹9,389 crore.
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Net interest income increased 12% to ₹15,371 crore as the balance sheet expanded. The gain came despite a lower reported NIM of 3.36%, compared with 3.55% a year earlier. Excluding the effect of FCNR(B) deposits, management reported a 3.47% NIM.
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Other income was mixed
Other income slipped 1% to ₹6,531 crore. Trading income dropped to ₹85 crore from ₹498 crore in the year-ago quarter, while fee income rose 6% to ₹6,381 crore. Operating profit was ₹11,083 crore, up 6.4% year on year but down 4.9% sequentially. Operating expenses rose to ₹10,819 crore, limiting the benefit from revenue growth.
Loan and deposit growth
Advances
Total advances grew 23% year on year and 9% sequentially to ₹13.74 trillion. Retail loans rose 16% to ₹7.4 trillion and made up 54% of net advances. SME loans increased 25% to ₹1.65 trillion, while corporate advances grew 34% to ₹4.69 trillion.
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Deposits
Deposits increased 21% to ₹14.52 trillion. Term deposits grew 27%, current-account deposits 7% and savings-account deposits 12%. The CASA ratio was 36%, down from 40% a year earlier, indicating that term deposits accounted for more of the funding mix.
Did asset quality improve?
Yes. Gross non-performing assets were 1.16% at 30 September 2026, down from 1.28% a quarter earlier. Net NPA improved to 0.35% from 0.39%. Gross slippages declined to ₹4,762 crore from ₹5,696 crore in Q2FY26, while the provision-coverage ratio, excluding prudential write-offs, remained 70%.
The improvement means the profit increase was not solely a mathematical effect of lower provisions; credit indicators also moved in a favorable direction. However, provisions, slippages and margins can change materially from quarter to quarter, so the Q2 figures should be read as period-specific results rather than a permanent trend.
How FCNR(B) deposits affected margins and funding
Executive Director Subrat Mohanty said FCNR(B) funds were used either to replace higher-cost deposits coming up for renewal or to support advances growth. In Q2FY27, some FCNR(B) funds were used to retire or substitute high-cost deposits. This gives the bank flexibility across funding costs and asset mix, but the reported NIM still reflected the quarter’s FCNR(B) effect.
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What management said
Managing Director and CEO Amitabh Chaudhry said growth came from higher wallet share among existing customers while maintaining disciplined risk thresholds.
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Group CFO Rajeev Mantri said deposit and advance growth was supported by NII growth, improving asset quality and healthy operating performance, alongside liquidity and capital buffers intended to support future expansion.
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Other corporate developments
The results report said the board appointed former Securities and Exchange Board of India Whole-Time Member Ananth Narayan as an additional independent director, effective 19 October 2026. It also named Rahul Shukla Group Head, Commercial and Bharat Banking.
How to read the headline number
- Profit quality: The 37.6% increase was helped decisively by the 52.2% fall in provisions, so profit growth should be assessed alongside credit costs.
- Core performance: NII grew 12%, but the 3.36% NIM was below the year-ago level.
- Balance-sheet momentum: Advances grew 23% and deposits 21%, with particularly rapid corporate, SME and term-deposit expansion.
- Credit risk: GNPA, NNPA and gross slippages all improved on the disclosed comparisons.
- Income mix and costs: Fee income rose, but trading income fell and operating expenses increased.
For investors comparing banks, the most useful comparison is not headline profit alone. Examine provision-driven growth, NII and NIM, advances and deposits, slippages and credit costs, capital and liquidity buffers, and the balance between retail, SME and corporate lending.
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