What happened
Axis Bank reported a net profit of ₹7,003 crore for the second quarter of FY27 (July to September 2026) on Saturday, 17 October. That is a rise of 38% from about ₹5,089 crore in the same quarter last year, according to reports in Economic Times and Business Today. Business Today put the year-ago figure at ₹5,090 crore.
Net interest income (NII), the gap between what a bank earns on loans and pays on deposits, rose 12% to ₹15,371 crore. NDTV Profit reported that the year-ago figure was ₹13,744.55 crore.
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Net interest margin (NIM), which shows how much the bank earns on its assets after interest costs, was 3.36%.
Against expectations
Business Today reported that consensus estimates were ₹7,157 crore for profit, ₹15,259 crore for NII and 3.4% for NIM. So profit and margin came in slightly below those estimates, while NII was a little above them.
Asset quality and provisions
Provisions and contingencies, the money set aside for possible loan losses, were ₹1,694 crore, including specific loan loss provisions of ₹1,564 crore. NDTV Profit said provisions fell by over 50%.
Gross non-performing assets (NPAs), loans where repayments have stalled, were 1.16% of loans, down 30 basis points (0.30 percentage point) from a year earlier. The net slippage ratio, which tracks fresh bad loans, was 0.75%, also down 30 basis points.
The provision coverage ratio, which shows how much of the bad loans is covered by provisions, was 164%. Annualised credit cost for the quarter was 0.45%. The bank also held cumulative standard and additional provisions of ₹15,860 crore as of 30 September.
Balance sheet, loans and deposits
- Balance sheet: up 22% year-on-year to ₹20,46,240 crore.
- Advances: up 23% year-on-year and 9% over the previous quarter to ₹13,73,727 crore.
- Retail loans: up 16% to ₹7,39,905 crore, or 54% of net advances. About 74% of the retail book is secured, and home loans are 24% of it.
- Deposits: up 21% year-on-year and 6% quarter-on-quarter on a month-end basis. Term deposits grew 27%, savings deposits 12% and current account deposits 7%.
- CASA deposits (current and savings accounts, usually cheaper funds for banks) were 36% of total deposits.
CEO Amitabh Chaudhry said the bank’s focus was on building a franchise combining innovation, trust and execution at scale.
What it means for you
If you hold Axis Bank shares or deposits, the numbers show a bank growing loans and deposits faster than profit margins are moving, with bad loans lower than a year ago. Falling provisions helped lift profit.
If you are a depositor, term deposits grew fastest, which shows customers continued to park money in fixed deposits. You can compare returns with the FD calculator. Borrowers can check repayments on the EMI calculator.
Background
Quarterly results from banks are watched because they show loan demand, funding costs and the health of loan books. Axis Bank’s results came on the same day as other large private lenders. HDFC Bank reported a profit of ₹19,509 crore, up 4.6%, and ICICI Bank reported ₹14,843 crore, up 20.1%, according to Economic Times.
