Axis Bank Q2 Results: Net profit jumps 38% YoY- Check asset quality, stock trend, and other key highlights
Axis Bank Q2 Results 2026: Axis Bank on Saturday, October 17, reported a 38% year-on-year (YoY) jump in net profit to ₹7,003 crore for the second quarter of FY27, compared with ₹5,089 crore in the corresponding quarter last year. The private sector lender's earnings were supported by growth in net interest income and an improvement in asset quality.
Net interest income (NII), the difference between interest earned and interest expended, increased 12% YoY to ₹15,371 crore. Net interest margin (NIM) stood at 3.36% during the quarter and improved to 3.47% after excluding the impact of foreign currency non-resident (FCNR-B) deposits.
Operating profit grew 6% YoY to ₹11,083 crore, while core operating profit rose 11% to ₹10,998 crore. Other income declined 1% to ₹6,531 crore, even as fee income advanced 6% to ₹6,381 crore.
Commenting on the bank's performance, managing director and CEO Amitabh Chaudhry said Axis Bank continued to focus on digital payments, secure banking, AI-driven innovation and strategic partnerships to strengthen its customer offerings.
Axis Bank reported a year-on-year improvement in its asset quality, with the gross non-performing asset (GNPA) ratio falling 30 basis points (bps) to 1.16% in Q2FY27. The net non-performing asset (NNPA) ratio declined 9 bps to 0.35%.
Gross slippages dropped to ₹4,762 crore during the September quarter, compared with ₹5,566 crore in the preceding quarter and ₹5,696 crore a year earlier. The net slippage ratio also declined 30 bps YoY to 0.75%.
The lender's annualised net credit cost came in at 0.45%, marking a reduction of 28 bps year-on-year and 18 bps sequentially. Meanwhile, its provision coverage ratio remained stable at 70%, unchanged from both the previous quarter and the corresponding period last year.
Axis Bank set aside ₹1,694 crore towards provisions and contingencies in Q2FY27, including ₹1,564 crore in specific loan-loss provisions.
As of September 30, 2026, the bank had accumulated ₹15,860 crore in provisions against standard assets and additional provisions outside those for non-performing assets (NPAs). These were over and above the NPA provisions accounted for in the calculation of its provision coverage ratio.
Axis Bank's advances expanded 23% year-on-year and 9% quarter-on-quarter to ₹13.74 lakh crore as of September 30, 2026.
Retail lending increased 16% YoY to ₹7.40 lakh crore, representing 54% of net advances. SME loans grew 25% to ₹1.65 lakh crore, while corporate lending registered growth of 34%.
Total deposits rose 21% year-on-year and 6% sequentially to ₹14.52 lakh crore on a month-end basis. Term deposits recorded 27% growth, while current account deposits increased 7% and savings account deposits advanced 12%.
The current account and savings account (CASA) ratio stood at 36%. The bank's cost of funds also declined by 8 bps from the year-ago period.
Axis Bank's capital adequacy ratio stood at 16.27% as of September 30, 2026, while its common equity tier-1 (CET-1) ratio was 14.61%. The bank added 23 bps to its CET-1 ratio during the first half of FY27.
In addition, the lender held ₹8,006 crore in provisions over and above those reflected in its reported capital adequacy ratio. These additional provisions represented a capital cushion equivalent to approximately 49 bps.
For the first half of FY27, Axis Bank's net profit climbed 30% year-on-year to ₹14,117 crore from ₹10,896 crore in H1FY26.
NII increased 10% to ₹30,018 crore, while fee income rose 6% to ₹12,536 crore. Operating profit advanced 4% to ₹22,742 crore from ₹21,928 crore in the year-ago period.
Core operating profit grew 11% to ₹22,120 crore compared with ₹20,010 crore in H1FY26.
Axis Bank shares ended Friday's session, October 16, at ₹1,290, up 0.16%, ahead of the Q2FY27 earnings announcement.
The stock has gained around 4% over the past month but has declined 1.5% over three months and 4.5% over six months. Over the past year, it has advanced approximately 8%.
On a year-to-date basis, Axis Bank shares have gained 1.2%, outperforming the Nifty 50, which has fallen 11.5% over the same period. The lender's market capitalisation stood at approximately ₹4.02 lakh crore.
Investors will track the bank's net interest margins, loan growth, deposit mobilisation and asset quality in assessing the sustainability of earnings growth and the stock's outlook.
Pranati Deva is a seasoned financial journalist with over a decade of experience in high-pressure newsroom environments, currently working as a Senior Sub Editor at LiveMint. Over the years, she has developed a reputation for sharp editorial judgement, a strong grasp of market dynamics, and the ability to translate complex financial developments into clear, engaging stories for a wide audience. <br><br> Her core areas of coverage include stock markets, leading listed companies, currencies, and commodities, with a particular strength in fast-paced, real-time market reporting. She is known for handling breaking market news, earnings-driven stock movements, and macroeconomic developments with speed, accuracy, and context—qualities that are essential in financial journalism. <br><br> Pranati has built a diverse and credible professional track record across some of India’s most respected news organisations, including MintGenie, CNBC-TV18, Business Standard and EconomicTimes.com. During her stints at these platforms, she produced data-driven market stories, curated and steered live blogs during volatile trading sessions, and conducted interviews with market veterans, fund managers, economists, and industry experts. Her work often combines on-ground reporting with analytical depth, helping readers make sense of daily market fluctuations and longer-term trends. An alumnus of the Symbiosis Institute of Media and Communications and Hansraj College, University of Delhi, Pranati brings a strong academic foundation to her journalism. She specialises in real-time financial reporting, with a keen focus on precision, balance, and insight, aiming to decode market movements in a way that is both informative and accessible to readers across experience levels.
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