Axis Bank has reported 23% growth in net profit at Rs 7113.92 crore for the quarter ended June 2026 (Q1FY2027). Net Interest Income (NII) increased 8% while the core fee income of the bank also improved 7% in Q1FY2027. The Net Interest Margin (NIM) of the bank fell to 3.46% in Q1FY2027 compared to 3.80% in the corresponding quarter of previous year.

On business front, the business growth accelerated to 19% at end June 2026 from 16% at end June 2026, as the loan book growth accelerated to 19%. The CASA ratio of the bank has eased to 38.0% at end June 2026 from 40.3% at end June 2025.

NII growth improves as loan book jumps: Interest income increased 9% to Rs 33985.63 crore, while interest expenses moved up 10% to Rs 19339.53 crore in Q1FY2027. NII improved 8% to Rs 14646.10 crore in Q1FY2027.

Margins declines: The bank has shown 32 bps YoY decline in cost of deposits to 4.75%. NIM has eased 34 bps YoY to 3.46%, while fell 16 bps qoq to 3.46% in Q1FY2027.

Non-interest income declines: The non-interest income of the bank declined 7% to Rs 6735.42 crore in Q1FY2027. Bank has posted strong 7% growth in core fee income to Rs 6156 crore, while the treasury income eased 62% to Rs 537 crore and recoveries and other income also declined 54% to Rs 42 crore in Q1FY2027.

Expense ratio rises: The operating expenses of the bank increased 5% to Rs 9722.42 crore, as other expenses moved up 10% to Rs 6664.42 crore, while employee expenses fell 6% to Rs 3058 crore in Q1FY2027. Cost to income ratio increased to 45.5% in Q1FY2027 compared with 44.7% in Q1FY2026. Operating Profit moved up 1% to Rs 11659.10 crore.

Provisions and contingencies decline: The bank has shown 44% decline in provisions to Rs 2223 crore. The loan loss provisions fell 47% to Rs 2079 crore, while the bank has reversed other provisions of Rs 51 crore in Q1FY2027. The standard asset provisions increased 27% to Rs 195 crore in Q1FY2027.

PBT increased 25% to Rs 9436.56 crore in Q1FY2027. Effective tax rate increased to 24.6% in Q1FY2027 from 23.3% in Q1FY2026. Net Profit increased 23% YoY to Rs 7113.92 crore in Q1FY2027.

Asset quality stable: The bank has maintained stable asset quality in Q1FY2027.

The fresh slippages of loans stood at Rs 5566 crore in Q1FY2027 compared with Rs 4675 crore in previous quarter and Rs 8200 crore in the corresponding quarter last year.

The recoveries and upgradations of NPAs stood at Rs 2126 crore, while the write-off of loans was at Rs 2399 crore in Q1FY2027.

The standard restructured loan book of the bank declined to Rs 747 crore end June 2026 compared to Rs 780 crore a quarter ago.

Provision coverage ratio was steady at 92% at end June 2026 compared to 92% a quarter ago and 92% a year ago.

The capital adequacy ratio of the bank stood at 16.7% with Tier I ratio at 14.6% at end June 2026.

The risk weighted assets of the bank has increased 15% YoY to Rs 1383816 crore end June 2026,

Business Highlights:

Business growth improves: The business of the bank has increased at an accelerated pace of 19% YoY to Rs 2634493 crore end June 2026, as advances growth improved to 19% to Rs 1261557 crore and deposits growth improved to 18% to Rs 1372936 crore at end June 2026. With the faster growth in advances, the credit to deposit ratio rose to 91.9% at end June 2026 from 91.2% at end June 2025.

CASA deposits ratio declines: The CASA deposits of the bank increased 11% YoY to Rs 521698 crore at end June 2026. The current account deposits moved up 6% to Rs 184776 crore, while saving account deposits increased 14% to Rs 344136 crore end June 2026. The CASA ratio eased to 38.0% at end June 2026 compared to 40.3% at end June 2025, while declined from 39.6% at end June 2026. The term deposits have increased 23% to Rs 851238 crore end June 2026.

Strong corporate loan growth: Within the loan book, the retail loans increased 8% YoY to Rs 675546 crore at end June 2026, while MSME credit increased 25% to Rs 151619 crore. The corporate credit has surged 31% to Rs 380190 crore end June 2026. The overseas credit has increased 110% to Rs 54202 crore end June 2026. The share of retail, agriculture and MSME (RAM) eased to 65.6% at end June 2026 compared to 70.2% at end June 2025.

Investment book of the bank increased 22% YoY to Rs 438955 crore at end June 2026.

Branch expansion: The bank has added 20 branches and reduced 232 ATMs in Q1FY2027, taking overall tally to 6295 branches and 12564 ATM`s end June 2026.

Book value of the bank stood at Rs 680.5 per share at end June 2026, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 663.5 per share at end June 2026.

Subsidiary performance

The Bank’s domestic subsidiaries delivered steady performance with Q1FY27 PAT of Rs 546 crores, up 21% YOY.

Axis Finance overall assets under finance crossed Rs 50,000 crores growing 21% YOY, of which  Retail book grew 22% YOY. Share of Retail + MSME at 71% of total book. Axis Finance remains well capitalized  with total Capital Adequacy Ratio of 21.56%. The book quality remains strong with net NPA at 0.39%. Axis Finance Q1FY27 PAT was Rs 244 crores, up 29% YOY from Rs 189 crores in Q1FY26. 

Axis AMC’s overall QAAUM grew 10% YOY to Rs 3,69,030 crores. Its Q1FY27 PAT was Rs 134 crores, up 3% YOY from Rs 130 crores in Q1FY26.

Axis Capital Q1FY27 PAT was Rs 65 crores, up 72% YOY. It completed 8 ECM and 3 non-ECM transactions during Q1FY27.

Axis Securities’ revenues for Q1FY27 stood at Rs 410 crores and PAT stood at Rs 96 crores, up 8% YOY. Its customer base grew 10% YOY.

Financial Performance FY2026:

Bank has posted 7% decline in net profit to Rs 24456.66 crore in the year ended March 2026 (FY2026). The net interest income increased 3% to Rs 56048.04 crore, while non-interest income moved up 3% to Rs 26130.85 crore, leading net total income to increase 3% to Rs 82178.89 crore in FY2026. The operating expenses increased 5% to Rs 39362.08 crore, while provision and contingencies jumped 71% to Rs 13262.83 crore. PBT declined 14% to Rs 29553.98 crore in FY2026. The cost-to-income ratio rose to 47.9% in FY2026 compared to 47.1% in FY2025. An effective tax rate eased to 17.2% in FY2026 compared to 23.2% in FY2025. The net profit has declined 7% to Rs 24456.66 crore in FY2026.