Axis Bank Q2 Net Profit Rises 38% to Rs 7,003 Crore as Bad Loans Decline

Axis Bank Limited (NSE:AXISBANK) reported a 38 percent increase in standalone net profit to Rs 7,003 crore for the second quarter ended September 30, 2026. Net interest income climbed 12 percent year-on-year to Rs 15,371 crore, while core operating revenue grew 10 percent to Rs 21,817 crore. The lender benefited from strong credit expansion across retail, corporate, and small business segments, alongside steady deposit growth.

The results highlight a broad balance-sheet expansion paired with significant gains in asset quality. Gross non-performing assets dropped to 1.16 percent from 1.46 percent a year earlier, and net non-performing assets fell to 0.35 percent. Total advances expanded 23 percent year-on-year to Rs 13.74 lakh crore, led by a 34 percent jump in corporate lending and a 25 percent rise in SME loans. The cost-to-assets ratio also dropped 24 basis points to 2.14 percent, showing improved operating efficiency.

Looking ahead, investors will watch how the bank navigates funding costs and protects its net interest margin, which stood at 3.36 percent in the quarter. Key monitorables include the stability of credit demand, deposit cost management, and the performance of domestic subsidiaries, which delivered a 29 percent profit increase in the first half of the fiscal year.