Axis Bank reported a 23% year-on-year rise in net profit to ₹7,114 crore for the quarter ending June 2026. The growth was driven by an 8% increase in net interest income and a steady improvement in asset quality. Total deposits and advances both grew by nearly 20%, reflecting a significant expansion in the bank's balance sheet.
Axis Bank has released its financial results for the first quarter of the 2026-27 financial year, reporting a standalone net profit of ₹7,114 crore. This represents a 23% increase compared to the ₹5,806 crore profit reported in the same quarter last year.
The bank’s profitability was supported by its net interest income, which is the difference between interest earned on loans and interest paid on deposits. This figure grew by 8% to reach ₹14,646 crore. Additionally, the bank recorded a net interest margin—a measure of the profitability of its lending activities—of 3.46% for the quarter. Non-interest income, which includes fees and other service-based earnings, totaled ₹6,735 crore.
Asset Quality and Loan Book Expansion
A key focus for investors in the banking sector is asset quality, which refers to the health of a bank's loan book. Axis Bank reported an improvement in this area as its gross non-performing assets ratio dropped to 1.28% by the end of June 2026, compared to 1.57% a year ago. The net non-performing assets ratio also showed improvement, moving to 0.39% from 0.45%. Furthermore, new bad loans, referred to as gross slippages, fell to ₹5,566 crore from ₹8,200 crore in the previous year.
The bank’s lending operations saw broad-based growth. Total net advances rose 19% to ₹12.62 lakh crore, with the corporate loan segment showing a 38% expansion and SME advances growing by 25%. Retail loans saw a more modest growth of 8%. On the liability side, total deposits grew by 18% to reach ₹13.73 lakh crore.
Capital Adequacy and Market Performance
Axis Bank maintained a strong capital buffer to support its lending activities, with its capital adequacy ratio standing at 16.67%. The bank also holds an additional capital cushion from provisions that are not part of its standard regulatory capital calculations. This positioning provides the bank with flexibility for future credit growth.
Following the announcement, Axis Bank shares closed at ₹1,328.5 on the NSE, reflecting a 1.6% rise on Friday. While the broader Nifty 50 index has faced a decline of 6.9% so far this year, Axis Bank has recorded a gain of 4.3% during the same period. Moving forward, investors may monitor whether the bank can sustain its loan growth momentum and maintain stable asset quality levels amidst the evolving interest rate environment.