Axis Bank's Q2 net profit jumps 37.6% to ₹7,003cr
What's the story
Axis Bank has reported a 37.6% year-on-year rise in net profit for the second quarter of FY27. The private sector lender's net profit stood at ₹7,003.3 crore, missing market expectations by a whisker. Analysts had estimated a net profit of ₹7,132 crore for the quarter under review. The bank's net interest income (NII) also rose by 11.8% to ₹15,371.4 crore during this period.
Financial growth
NII surpasses analysts' expectations
Axis Bank's NII surpassed analysts' expectations, beating the poll estimate of ₹14,970 crore by around 2.7%.
The bank also witnessed an improvement in asset quality during the quarter.
Its net interest margin (NIM) for the July-September period stood at 3.36%, excluding foreign currency non-resident (FCNR-B) deposits, where it was at 3.47%.
Revenue details
Operating profit grows by 6% YoY
The operating profit of Axis Bank grew by 6% YoY to ₹11,083 crore in Q2 FY27. The core operating profit also witnessed an 11% increase, standing at ₹10,998 crore.
However, other income dipped by 1% to ₹6,531 crore during this period.
Despite the decline in other income figures, fee income saw a growth of 6%, reaching ₹6,381 crore for the quarter under review.
Quality improvement
Asset quality improves for Axis Bank
Axis Bank's asset quality improved with the gross non-performing assets (GNPA) ratio falling to 1.16% from 1.46% a year ago and 1.28% in the previous quarter.
The net NPA ratio also fell to 0.35%, down from 0.44% a year ago and 0.39% in Q1 FY27.
The bank reported provisions and contingencies of ₹1,694 crore for the fiscal second quarter, including specific loan-loss provisions of ₹1,564 crore during this period.
Expansion
Retail loans grow by 16% YoY
Axis Bank witnessed a 23% YoY growth in advances, which stood at ₹13.74 lakh crore as of September 30, 2026.
Retail loans grew by 16% YoY to ₹7.40 lakh crore, accounting for 54% of the bank's net advances.
Total deposits also rose by 21% YoY and 6% sequentially to ₹14.52 lakh crore on a month-end basis during this period.