Axis Bank Q2 results: Net profit jumps 38% YoY to ₹7003 crore as provisions fall 50%; GNPA at 1.16%

Axis Bank announced its Q2FY27 earnings on Saturday, delivering a 37.5% YoY jump in net profit. In addition, asset quality improved significantly during the quarter to 0.35% NNPA. Axis Bank shares closed on a flat-to-positive note on Friday ahead of the quarterly earnings.

Net interest income

For the quarter ended September 2026, the net interest income surged 11.8% YoY to ₹15,371 crore as compared to ₹13,745 crore in the same period last year. On a sequential basis, the net interest income surged 4.9%, up from ₹14,646 crore.

The interest expense growth of 22% outpaced the interest income growth of 17%, leading to a nearly 11% rise in net interest income.

Asset quality

The private sector lender delivered superior asset quality for the quarter as the GNPA for Q2FY27 improved to 1.16%, from 1.46% in the same period last year and 1.28% in the previous quarter. Similarly, the net non-performing assets ratio also improved to 0.35% for the quarter as compared to 0.44% in the same period last year and 0.39% in the previous quarter.

Profitability

Bank reported a 37.5% YoY jump in net profit at ₹7,003 crore, up from ₹5089 crore in Q2FY26. The large part of profitability growth was driven by a 52.2% drop in provisions during the quarter to ₹1,693 crore, as compared to ₹3,547 crore in the same period last year.

However, on a sequential basis, the profit growth remained muted at -1.3%, down from ₹7,113 crore in the previous quarter.

Granular loan book growth

For the quarter ended September 2026, the retail category loans jumped 16% YoY and 10% QoQ, and SME loans were up 25%YoY. Meanwhile, the corporate and mid-corporate category loans also went up 34% and 29% YoY, delivering an overall granular loan mix for the bank.

Axis Bank Q2FY27 business updates

Axis Bank posted steady deposit growth in the quarter, rising 20.7% YoY to ₹1.45 lakh crore, up from ₹1.25 lakh crore in the same period last year. Term deposits largely drove the growth at 27% YoY, while the low-cost CASA deposits jumped 10.6%.

The gross advances for the quarter jumped in high double digits at 22.7% YoY and 8.8% sequentially to ₹1.38 lakh crore, up from ₹1.12 lakh crore in the same period last year.

Additionally, during the quarter, Axis Bank mobilised $10.6 billion (₹1.02 lakh crore) in swap facility for the FCNRB deposits scheme introduced by the Reserve Bank of India

Axis Bank share price performance

Axis Bank shares have delivered steady growth of 1.2% on a YTD basis in 2026 and 7.83% in the trailing twelve months. However, it outperformed the benchmark NIFTY Bank index, which delivered -6.4% and 2.7% returns for the same period.