Axis Bank Ltd. Reports 38% Jump in Q2 Profit

Axis Bank reported a strong financial performance for the second quarter of FY27, with standalone net profit rising 37.6% year-on-year to ₹7,003 crore, compared with ₹5,090 crore in the corresponding quarter last year. Net interest income (NII) increased 11.8% to ₹15,371 crore, supported by robust loan growth and lower provisions for potential bad loans. The bank’s advances grew approximately 23% year-on-year, while deposits increased 20.7%. Asset quality improved, with the gross non-performing asset (GNPA) ratio declining to 1.16% from 1.46% a year earlier, and the net NPA ratio falling to 0.35%. However, the bank’s net interest margin stood at 3.36%, while higher operating expenses and lower other income partly offset the benefits of strong core banking performance. Going forward, investors will closely monitor Axis Bank’s loan growth, deposit mobilisation, operating costs and margin trends. Strong profitability and improving asset quality provide positive signals, although the slight miss against analyst profit estimates highlights the importance of cost management. Sustainable credit growth and stable margins will remain key factors influencing the stock’s performance.