Axis Bank Q1 Profit Rises 23% on Lower Provisions and Healthy Loan Growth

Research Analyst: UJVIN NEVATIA (PROPRIETOR: NEVAT INVESTMENTS) | SEBI Registration No.: INH100009628 $AXISBANK reported a 23% year-on-year increase in standalone net profit to ₹7,114 crore for the first quarter of FY27, compared with ₹5,806 crore in the corresponding quarter last year. The growth was primarily driven by a sharp decline in provisions and healthy expansion in its lending business. Net Interest Income (NII) rose 8% year-on-year to ₹14,646 crore, supported by steady credit growth. The bank's operating profit increased 14% to ₹11,515 crore, while advances grew 8% and deposits rose 9% year-on-year. Asset quality also improved, with the gross non-performing asset (GNPA) ratio declining to 1.32% from 1.54% a year earlier and the net NPA ratio improving to 0.35%. Lower provisions and better asset quality contributed significantly to the quarter's strong profitability. Industry & Economic Impact: The results reflect continued resilience in India's banking sector, supported by healthy credit demand, stable deposit growth, and improving asset quality. Lower stress on loan books has enabled banks to reduce provisioning while maintaining profitability, even as competition for deposits remains intense. From an economic perspective, sustained loan growth supports investment, business expansion, and consumer spending across the economy. Stronger bank balance sheets and improved asset quality also enhance financial stability, enabling banks to extend more credit to individuals, MSMEs, and corporates, thereby supporting India's long-term economic growth. Source: Economic Times No Recommendations