FILE PHOTO: Axis Bank reported a 37.6 per cent rise in second-quarter net profit to ₹7,003 crore, supported by higher income, loan growth and lower provisions.
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DANISH SIDDIQUI
Axis Bank reported a 37.6 per cent year-on-year rise in standalone net profit to ₹7,003 crore for the quarter ended September 2026, driven by strong core income growth, robust loan book expansion, and a sharp decline in provisioning costs. The lender had posted a net profit of ₹5,090 crore in the corresponding quarter last year. Sequentially, profit eased marginally by 1.6 per cent to ₹7,114 crore from ₹7,214 crore in Q1 FY27.
Net interest income rises 12 per cent
The bank’s net interest income (NII) grew 12 per cent year-on-year to ₹15,371 crore from ₹13,745 crore in Q2 FY26. Sequentially, NII grew around 5 per cent, supported by strong momentum across retail, SME and wholesale banking businesses. Net interest margin (NIM) stood at 3.36 per cent during the quarter and 3.47 per cent excluding the impact of FCNR(B) deposits, reflecting margin resilience amid a competitive funding environment.
Advances grow across retail, SME and wholesale businesses
The strong earnings growth was underpinned by healthy loan growth across businesses. Total advances grew 23 per cent year-on-year and 9 per cent quarter-on-quarter, while advances excluding loans linked to FCNR(B) deposits increased 19 per cent year-on-year. Retail advances expanded 16 per cent year-on-year, driven by healthy disbursement trends across products. The SME portfolio continued to outperform, growing 25 per cent year-on-year, supported by differentiated offerings and technology-led capabilities, while the wholesale banking franchise grew 34 per cent year-on-year on robust client activity and deeper relationship-led engagement.
Lower provisions boost profitability
Operating profit stood at ₹11,083 crore, up 6.4 per cent year-on-year but down 4.9 per cent sequentially from ₹11,659 crore in the June quarter, as operating expenses rose faster than revenue. Operating expenses increased to ₹10,819 crore from ₹9,722 crore in the preceding quarter, led by higher employee expenses and other operating costs. Employee costs rose to ₹3,314 crore from ₹3,058 crore. Lower provisioning drove profit growth during the quarter. Provisions and contingencies fell 52.2 per cent year-on-year to ₹1,694 crore from ₹3,547 crore, helping profit before tax rise 36.8 per cent to ₹9,389 crore.
Management highlights growth and risk discipline
“Growth was achieved through higher wallet share from existing customers while maintaining disciplined risk thresholds,” said Amitabh Chaudhry, MD & CEO of Axis Bank. “We delivered robust growth in deposits and advances, supported by strong NII growth, improving asset quality and healthy operating performance, while maintaining strong liquidity and capital buffers to support future growth,” said Rajeev Mantri, Group CFO, Axis Bank.
Deposits grow as asset quality improves
On the liability side, total deposits grew 23 per cent year-on-year, supported by strong growth in term deposits, CASA balances, and FCNR(B) inflows. Asset quality remained a key positive, with the gross NPA ratio improving to 1.16 per cent from 1.46 per cent a year ago and the net NPA ratio declining to 0.35 per cent from 0.44 per cent. Net credit cost reduced to 0.45 per cent, reflecting lower stress formation and prudent risk management. Improved asset quality, along with strong operating performance, was a major contributor to the sharp rise in profits during the quarter.
Rahul Shukla appointed Group Head
Separately, the bank appointed Rahul Shukla as Group Head, Commercial and Bharat Banking, effective October 19, 2026, strengthening its senior management team. (ends)
Published on October 17, 2026
