Earnings India

Axis Bank reported a 38% year-on-year surge in net profit to Rs 7,003 crore in Q2 FY27, driven by a 12% rise in net interest income and improved credit quality, according to ET Markets.

Axis Bank Q2 Profit Jumps 38% to Rs 7,003 Crore

Axis Bank’s Q2 FY27 results showed net profit of Rs 7,003 crore, up 38% from Rs 5,089 crore in the same period last year. Net interest income (NII) rose 12% to Rs 15,371 crore, with a net interest margin of 3.36%. The bank’s gross non-performing asset (GNPA) ratio dropped 30 bps to 1.16%, while net NPA (NNPA) fell 9 bps to 0.35%. Advances grew 23% YoY and 9% QoQ, supported by a 6% YoY increase in operating profit to Rs 11,083 crore and a 11% YoY rise in core operating profit to Rs 10,998 crore. Fee income grew 6% to Rs 12,536 crore in H1 FY27, while FCNR (B) deposits reached $10.62 billion, with $4.69 billion in standby letters of credit issued.

The 38% net profit growth and 12% NII rise highlight Axis Bank’s strong capital generation and loan portfolio performance. Improved GNPA and NNPA ratios indicate better credit quality, reducing provisioning pressures. The 23% YoY advance growth reflects expanding lending activity, while fee income growth underscores successful non-interest revenue strategies. The use of FCNR (B) deposits to offset non-retail term deposits may enhance liquidity management.

Investors benefit from improved profitability and reduced credit risk, while customers gain from enhanced digital banking services. Regulators monitor NPA management and provisioning adequacy, and competitors face pressure from Axis Bank’s growth in advances and fee income. The bank’s ability to sustain growth in advances and fee income remains a key focus for stakeholders.

The report does not address risks or opportunities, and no further developments are mentioned.

Axis Bank’s Q2 FY27 results highlight robust profitability and credit quality management, but the sustainability of growth in advances and fee income remains uncertain.

Topics: Banking, Financial Results, India Markets, Net Profit, NPA Ratio, Fee Income, FCNR Deposits, Banking Performance

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Source: ET Markets