Axis Bank Reports Strong Q1 FY27 Earnings
Axis Bank announced a significant financial performance for the first quarter of fiscal year 2027, reporting a 23% year-on-year (YoY) rise in standalone net profit. The bank's profit reached Rs 7,114 crore for the June quarter, up from Rs 5,806 crore in the corresponding period last year. This growth was primarily fueled by positive operating jaws, where revenue expansion outpaced operating expenses, alongside stable asset quality.
Key Financial Highlights
The bank’s Net Interest Income (NII) saw an 8% increase YoY, reaching Rs 14,646 crore compared to Rs 13,560 crore a year prior. Fee income also contributed positively, rising 7% YoY to Rs 6,156 crore. However, the quarter saw a decline in trading income by 62% and miscellaneous income by 54% from the year-ago period. The Net Interest Margin (NIM) for Q1 FY27 stood at a healthy 3.46%.
Provisions and contingencies for the quarter amounted to Rs 2,223 crore, with specific loan loss provisions at Rs 2,079 crore. Axis Bank confirmed that the West Asia provision, established in Q4 FY26, remains untouched at Rs 2,001 crore, maintained as a prudent and precautionary measure.
Asset Quality Improves
Axis Bank demonstrated an improvement in its asset quality on a yearly basis. Gross Non-Performing Assets (GNPA) declined to 1.28% as of June 30, 2026, down from 1.57% a year earlier. Similarly, Net Non-Performing Assets (NNPA) eased to 0.39% from 0.45% in the same period last year. Recoveries from written-off accounts during the quarter totaled Rs 961 crore.
While gross slippages increased quarter-on-quarter to Rs 5,566 crore, they showed a decrease compared to Rs 8,200 crore in Q1 FY26. The bank's provision coverage ratio (PCR) stood at 70% of gross NPAs as of June 30, 2026.
Balance Sheet Growth and Management Commentary
The bank's balance sheet expanded by 20% YoY, reaching Rs 19,21,966 crore as of June 30. Total deposits grew 18% YoY, with current account deposits up 6% YoY, savings account deposits up 14% YoY, and term deposits showing a robust 23% YoY increase. The share of CASA deposits in total deposits was 38%.
MD & CEO Amitabh Chaudhry commented on the results, stating, “This quarter, we continued to invest across these priorities - strengthening digital security, deploying AI to simplify customer journeys, expanding growth platforms and supporting ecosystems that drive economic progress. With these investments we hope to create enduring value for our customers, stakeholders and the communities we serve.”