Axis Bank Q2 profit rises 38% to Rs 7,003 crore

Axis Bank reported net profit of Rs 7,003 crore for the second quarter of FY27 on Saturday, October 17, up 38% from Rs 5,089 crore a year earlier, according to Economic Times Markets, which cited the private lender’s regulatory filing.

Net interest income—the difference between interest earned and interest paid—rose 12% year-on-year to Rs 15,371 crore. The bank’s net interest margin stood at 3.36% for the quarter.

Advances expanded 23% from a year earlier and 9% from the preceding quarter. Operating profit increased 6% to Rs 11,083 crore, while core operating profit grew 11% to Rs 10,998 crore.

Bad-loan ratios fall; provisions at Rs 1,694 crore

The gross non-performing asset ratio declined 30 basis points year-on-year to 1.16%, while the net NPA ratio fell nine basis points to 0.35%. The net slippage ratio also dropped 30 basis points to 0.75%.

Provisions and contingencies totalled Rs 1,694 crore for the quarter, including Rs 1,564 crore in specific loan-loss provisions.

At September 30, 2026, Axis Bank held Rs 15,860 crore in cumulative standard and additional provisions outside NPAs. The lender said these buffers were separate from the NPA provisions used to calculate its provision coverage ratio.

First-half profit grows 30%

For the first half of FY27, net profit rose 30% to Rs 14,117 crore from Rs 10,896 crore in the corresponding period of FY26. Net interest income increased 10% to Rs 30,018 crore, and fee income grew 6% to Rs 12,536 crore.

First-half operating profit reached Rs 22,742 crore, up 4% from Rs 21,928 crore. Core operating profit increased 11% to Rs 22,120 crore from Rs 20,010 crore.

Foreign-currency deposits reshape funding mix

Axis Bank had mobilised $10.62 billion in Foreign Currency Non-Resident (Bank), or FCNR(B), deposits by September 30. Part of that funding was used to reduce non-retail term deposits during the quarter, with the latter declining 8.6% sequentially.

The bank also issued $4.69 billion in standby letters of credit to other lenders against loans backed by FCNR(B) deposits.

Managing Director and Chief Executive Officer Amitabh Chaudhry said the bank’s priorities included innovation, customer trust and execution at scale. He highlighted work on digital payments, secure banking, AI-led technology initiatives and strategic partnerships.