Axis Bank's net profit for the second quarter of the fiscal year 2027 rose by 37.5% compared to the same period last year, reaching ₹7003 crore. This increase reflects the bank's strong financial performance and improved asset quality during the quarter ended September 2026.
- Net interest income increased by 11.8% year-on-year to ₹15,371 crore.
- Gross Non-Performing Assets (GNPA) improved to 1.16% from 1.46% the previous year.
- Net Non-Performing Assets (NNPA) reduced to 0.35%.
- Deposits grew 20.7% year-on-year to ₹1.45 lakh crore.
- Gross advances rose 22.7% year-on-year to ₹1.38 lakh crore.
- Axis Bank mobilised $10.6 billion in swap facility for FCNRB deposits.
How did Axis Bank's net interest income perform in Q2 FY27?
Axis Bank's net interest income (NII) increased by 11.8% year-on-year, reaching ₹15,371 crore in the quarter ended September 2026. This was higher compared to ₹13,745 crore in the same period last year. Sequentially, the NII grew by 4.9% from ₹14,646 crore in the previous quarter. The growth was driven by a 17% increase in interest income, although interest expenses rose by 22%, resulting in an overall 11% rise in net interest income.
What improvements were seen in Axis Bank's asset quality?
Asset quality showed significant improvement during the quarter. The Gross Non-Performing Assets (GNPA) ratio decreased to 1.16% from 1.46% in Q2 FY26. Similarly, the Net Non-Performing Assets (NNPA) ratio improved to 0.35%. These figures represent the best-ever performance in asset quality for the bank, indicating better management of loan defaults and credit risks.
How did deposits and advances grow during the quarter?
Deposits at Axis Bank increased by 20.7% year-on-year, reaching ₹1.45 lakh crore compared to ₹1.25 lakh crore in the same quarter last year. Term deposits were the main driver, growing 27% year-on-year, while low-cost CASA (Current Account Savings Account) deposits rose by 10.6%. Gross advances, which represent the total loans given by the bank, jumped 22.7% year-on-year and 8.8% sequentially to ₹1.38 lakh crore.
What role did the FCNRB deposits scheme play in this quarter?
During the quarter, Axis Bank mobilised $10.6 billion (approximately ₹1.02 lakh crore) through a swap facility under the Foreign Currency Non-Resident (Bank) or FCNRB deposits scheme introduced by the Reserve Bank of India. This scheme allows banks to attract foreign currency deposits from Non-Resident Indians, helping the bank strengthen its foreign currency liabilities and manage currency risks.
How have Axis Bank shares performed recently?
Axis Bank shares showed steady growth of 1.2% on a year-to-date basis in 2026 and 7.83% over the trailing twelve months. This performance outpaced the benchmark NIFTY Bank index, which recorded negative returns of -6.4% year-to-date and 2.7% over the same trailing period. The bank's strong quarterly earnings and improved asset quality likely contributed to this positive market performance.
