Mumbai: Private sector lender Axis Bank reported a 39.4 percent year-on-year increase in consolidated net profit to ₹7,704.67 crore for the July-September quarter of FY27, compared with ₹5,527.85 crore in the corresponding quarter last year.
The strong performance was supported by higher interest income, healthy loan growth and improvement in asset quality.
Standalone Profit Rises 38%
On a standalone basis, Axis Bank’s net profit increased 37.6 per cent to ₹7,003.28 crore from ₹5,089.64 crore in the year-ago quarter.
The bank’s operating profit rose 6 per cent to ₹11,083 crore, while core operating profit increased 11 per cent to ₹10,998 crore.
Operating expenses grew 9 percent year-on-year during the quarter.
Net Interest Income Grows 12%
Axis Bank’s net interest income (NII) increased 12 per cent year-on-year and 5 per cent sequentially to ₹15,371 crore.
Net interest margin (NIM), an important measure of lending profitability, stood at 3.36 per cent.
Chief Financial Officer Rajeev Mantri said better utilisation of foreign currency non-resident deposits, or FCNR(B), could help improve margins by replacing higher-cost funding.
Corporate Loan Book Surges 34%
The bank’s total advances jumped 23 per cent year-on-year to ₹13.74 lakh crore as of September 30, 2026.
Its corporate loan book expanded 34 per cent to ₹4.69 lakh crore, supported by demand from infrastructure, energy, metals, industrials and commercial real estate.
Vijay Mulbagal, Group Head of Wholesale Banking Coverage, said corporate lending growth was spread across project financing, capital expenditure, working capital and refinancing.
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The bank expects this momentum to remain sustainable because lending growth is diversified across sectors and customers.
Retail Loans Rise 16%
Retail advances increased 16 per cent to ₹7.40 lakh crore, accounting for 54 per cent of total net advances.
Around 74 per cent of the retail portfolio consisted of secured loans, while home loans represented 24 per cent of the retail book.
Deposits Grow 21%
Axis Bank’s total deposits increased 21 per cent year-on-year and 6 per cent sequentially.
Term deposits grew 27 per cent, savings deposits increased 12 per cent and current account deposits rose 7 per cent.
The share of low-cost current and savings account (CASA) deposits stood at 36 per cent.
Asset Quality Shows Improvement
The bank’s gross non-performing asset (GNPA) ratio improved to 1.16 per cent, declining 30 basis points year-on-year.
Net NPA ratio fell to 0.35 per cent, down 9 basis points from the previous year.
Despite possible inflation and interest-rate risks, management indicated that customer activity and a healthy lending pipeline continued to support credit demand.
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