Axis Bank Q2 Net Profit Jumps 38% to Rs 7,003 Crore as Provisions Drop
Axis Bank Limited (NSE:AXISBANK) reported a 38% year-on-year increase in standalone net profit to Rs 7,003 crore for the July-September quarter of FY27. The profit surge was primarily driven by a 52% drop in provisions and contingencies, which fell to Rs 1,694 crore from Rs 3,547 crore in the same period last year. Net interest income grew 12% to Rs 15,371 crore, supported by double-digit expansion in both deposits and advances.
The sharp fall in provisions significantly boosted overall earnings despite a modest 6% rise in core operating profit to Rs 11,083 crore. Asset quality showed solid improvement, with gross non-performing assets declining to 1.16% from 1.46% a year earlier and net non-performing assets easing to 0.35%. Note that provisions in the prior-year quarter were elevated by a one-time standard asset charge of Rs 1,231 crore. Fresh loan slippages also fell to Rs 4,762 crore, reflecting reduced credit stress.
Moving forward, key metrics to monitor include whether the bank can maintain its deposit momentum and preserve its net interest margin, which sat at 3.36% during the quarter. Total deposits surged 21% year-on-year to Rs 14.52 lakh crore, while advances climbed 23% to Rs 13.74 lakh crore. Corporate lending paced the expansion with a 34% increase, outpacing retail loan growth of 16%.
Key points
- Standalone net profit rose 38% year-on-year to Rs 7,003 crore for Q2 FY27.
- Provisions and contingencies declined 52% to Rs 1,694 crore from Rs 3,547 crore.
- Net interest income increased 12% to Rs 15,371 crore, with net interest margin at 3.36%.
- Gross NPAs improved to 1.16% from 1.46%, while net NPAs fell to 0.35% from 0.44%.
- Total advances grew 23% to Rs 13.74 lakh crore, led by a 34% rise in corporate lending.
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What was Axis Bank's net profit for Q2 FY27?
Axis Bank reported a standalone net profit of Rs 7,003 crore for the July-September quarter of FY27, representing a 38% increase compared to the same period in the previous year.
Why did Axis Bank's net profit jump in Q2 FY27?
The profit growth was largely driven by a 52% drop in provisions to Rs 1,694 crore, alongside a 12% increase in net interest income and improving asset quality.
How did Axis Bank's deposits and loans perform in Q2 FY27?
Total deposits rose 21% year-on-year to Rs 14.52 lakh crore, while total advances grew 23% to Rs 13.74 lakh crore. Corporate lending surged 34%, while retail lending increased by 16%.