Axis Bank reported a 39.4% rise in consolidated net profit to ₹7,704.67 crore in the September quarter, supported by higher core income, strong loan growth and an improvement in asset quality.
Mumbai, October 17 — Axis Bank reported a 39.4% year-on-year increase in consolidated net profit to ₹7,704.67 crore for the second quarter of FY27, compared with ₹5,527.85 crore in the same period last year.
On a standalone basis, the private sector lender’s net profit rose 37.6% to ₹7,003.28 crore, up from ₹5,089.64 crore a year earlier.
The bank’s operating profit increased 6% to ₹11,083 crore, while core operating profit rose 11% to ₹10,998 crore. Operating costs increased 9% year-on-year during the quarter.
Axis Bank’s net interest income increased 12% year-on-year to ₹15,371 crore, while rising 5% sequentially.
The bank reported a net interest margin of 3.36% for Q2 FY27.
Chief Financial Officer Rajeev Mantri said the bank expects some improvement in margins as it optimises deployment of FCNR(B) deposits, using those funds to support loan growth and replace relatively expensive deposits and borrowings.
The bank’s total advances grew 23% year-on-year and 9% quarter-on-quarter to ₹13.74 lakh crore as of September 30.
Excluding loans backed by FCNR(B) deposits, advances increased 19.1% to ₹13.30 lakh crore.
Retail loans rose 16% to ₹7.40 lakh crore and accounted for 54% of the bank’s net advances. Around 74% of the retail loan book was secured, while home loans represented 24% of retail lending.
The corporate loan book recorded even stronger growth, rising 34% to ₹4.69 lakh crore.
Axis Bank said growth came from sectors including infrastructure, energy, metals, industrials and commercial real estate, and was spread across project finance, capital expenditure, working capital and refinancing.
Deposits increased 21% year-on-year on a month-end basis. Current account deposits rose 7%, savings deposits increased 12% and term deposits climbed 27%.
The bank’s CASA ratio stood at 36%.
Asset quality also improved during the quarter. The gross NPA ratio declined to 1.16%, from 1.46% a year earlier, while the net NPA ratio fell to 0.35% from 0.44%.
Management said customer activity and the business pipeline continued to indicate healthy demand, although inflation and higher interest rates could create some moderation in overall industry growth.
