THEBUSINESSBYTES BUREAU

MUMBAI, OCTOBER 17, 2026

Private sector lender Axis Bank on Saturday reported a 39.4 per cent jump in consolidated net profit to Rs 7,704.67 crore for the September quarter of the current financial year, aided by growth in core operating profit and healthy expansion in its loan book.

The bank had posted a consolidated net profit of Rs 5,527.85 crore in the corresponding quarter of the previous financial year.

On a standalone basis, Axis Bank's net profit rose 37.6 per cent to Rs 7,003.28 crore in the second quarter of 2026-27, compared with Rs 5,089.64 crore in the year-ago period, according to a regulatory filing.

The bank's operating profit increased 6 per cent to Rs 11,083 crore during the reporting quarter, while core operating profit surged 11 per cent. Operating costs grew 9 per cent year-on-year in the quarter.

Net interest income (NII), the difference between interest earned and interest expended, rose 12 per cent year-on-year and 5 per cent sequentially to Rs 15,371 crore in the July-September quarter.

The bank's net interest margin (NIM), a key indicator of lending profitability, stood at 3.36 per cent during the quarter.

Axis Bank continued to record strong credit growth, with advances expanding 23 per cent year-on-year and 9 per cent quarter-on-quarter to Rs 13,73,727 crore as of September 30, 2026.

Retail loans grew 16 per cent annually to Rs 7,39,905 crore, accounting for 54 per cent of the bank's net advances. Secured retail loans constituted around 74 per cent of the retail loan portfolio, with home loans accounting for 24 per cent.

The lender also reported healthy growth in its deposit base. Total deposits increased 21 per cent year-on-year and 6 per cent quarter-on-quarter on a month-end basis.

Current account deposits grew 7 per cent year-on-year, while savings account deposits rose 12 per cent. Term deposits registered a stronger growth of 27 per cent during the period.

The share of low-cost current account and savings account (CASA) deposits in total deposits stood at 36 per cent.

Asset quality improved during the quarter, with the gross non-performing asset (GNPA) ratio declining to 1.16 per cent, down 0.30 percentage points year-on-year and 0.12 percentage points sequentially.

The net non-performing asset (NNPA) ratio also eased to 0.35 per cent, falling 0.09 percentage points from a year earlier and 0.04 percentage points from the preceding quarter, the bank said in a press release.