Quarterly Financial Results
Axis Bank Q1 FY27 Results: PAT Rises 23% YoY to ₹7,114 Crore; Deposits and Advances Continue Double-Digit Growth
NSE
axisbank
BSE
532215
- Axis Bank reported a strong start to FY27 with a 23% year-on-year increase in net profit to ₹7,114 crore, supported by healthy loan and deposit growth, stable asset quality, and improving operating efficiency.
- During the quarter ended June 30, 2026, the bank continued to strengthen its retail and SME franchise while maintaining robust capital adequacy and investing in digital transformation and AI-led banking initiatives.
PRICE-SENSITIVE TRIGGER
Event: Axis Bank announced its unaudited standalone and consolidated financial results for the quarter ended June 30, 2026 (Q1 FY27).
Type: Quarterly Financial Results
Impact: Positive
Immediate Effect: The bank delivered healthy earnings growth with continued expansion in deposits and advances, stable asset quality metrics, improving profitability and strong capital buffers, indicating resilient operating performance.
financials:
Financial Highlight:
- Operating Revenue: ₹21,382 crore (+3% YoY)
- Net Interest Income (NII): ₹14,646 crore (+8% YoY)
- Fee Income: ₹6,156 crore (+7% YoY)
- Operating Profit: ₹11,659 crore
- Core Operating Profit: ₹11,122 crore (+10% YoY)
- Profit After Tax (PAT): ₹7,114 crore (+23% YoY)
- Net Interest Margin (NIM): 3.46%
- Operating Expenses: ₹9,722 crore (+5% YoY)
- Operating Cost to Assets: 2.20%
- Return on Assets (ROA): 1.51%
- Return on Equity (ROE): 14.16%
Asset Quality:
- Gross NPA: 1.28%
- Net NPA: 0.39%
- Provision Coverage Ratio: 70%
- Coverage Ratio: 161%
- Net Credit Cost: 0.63%
- Net Slippage Ratio: 1.12%
Balance Sheet:
- Total Assets: ₹19.22 lakh crore (+20% YoY)
- Deposits: ₹13.73 lakh crore (+18% YoY)
- Advances: ₹12.62 lakh crore (+19% YoY)
- Shareholders’ Funds: ₹2.12 lakh crore (+15% YoY)
Capital Position:
- Capital Adequacy Ratio (CAR): 16.67%
- CET-1 Ratio: 14.64%
- Additional Capital Cushion: Approximately 52 basis points over reported CAR through prudent provisioning.
Segment Performance:
Deposits
- Total Deposits: +18% YoY
- Term Deposits: +23% YoY
- Savings Deposits: +14% YoY
- Current Account Deposits: +6% YoY
Advances
- Corporate Loans: +38% YoY
- SME Loans: +25% YoY
- Retail Loans: +8% YoY
- Mid-Corporate Loans: +27% YoY
Digital Banking
- Around 0.9 million credit cards acquired during the quarter.
- Maintained approximately 38% market share in UPI Payer PSP.
- Merchant acquiring market share remained around 22.1%.
- Axis Mobile maintained a 4.8-star rating with nearly 16 million monthly active users.
Highlight:
- Axis Bank reported a 23% YoY increase in PAT to ₹7,114 crore while deposits and advances grew 18% and 19% YoY respectively, supported by stable asset quality and healthy capital ratios.
What Happened ?
Axis Bank delivered a resilient first-quarter performance for FY27 despite a competitive banking environment. Earnings growth was driven by sustained loan expansion, healthy deposit mobilisation, stable credit quality and disciplined cost management.
Net Interest Income continued to grow on the back of expanding advances, while fee income remained healthy despite moderation in trading income. The bank also improved operating efficiency, reflected in a lower cost-to-assets ratio and stronger core operating profit.
Business momentum remained broad-based with strong growth across corporate lending, SME financing, retail banking and digital payment businesses. At the same time, the bank maintained comfortable liquidity and capital buffers, allowing it to continue investing in technology and future growth initiatives.
key details
Business Growth:
- Deposits increased 18% YoY across both average and period-end balances.
- Advances grew 19% YoY, supported by broad-based growth across corporate, SME and retail portfolios.
- Corporate lending remained the fastest-growing segment with 38% YoY growth.
- SME loans expanded 25% YoY, reflecting continued focus on commercial banking.
- Retail lending maintained steady expansion with 8% YoY growth.
Operational Performance:
- Core operating profit increased 10% YoY.
- Operating costs remained under control with only 5% YoY growth.
- Cost-to-assets improved to 2.20%.
- Fee income increased despite lower trading income.
- Positive operating jaws supported profitability expansion.
Asset Quality:
Axis Bank continued to report healthy asset quality during the quarter.
- Gross NPA reduced to 1.28%.
- Net NPA declined to 0.39%.
- Credit costs remained low.
- Provision coverage remained strong.
- Slippage ratios improved significantly compared with the previous year.
Digital & Technology Initiatives:
During the quarter, the bank accelerated investments across digital banking and artificial intelligence.
Key initiatives included:
- Launch of Aadhaar Face Authentication for self-service mobile number updates.
- AI-powered compliance and Re-KYC solutions for current account customers.
- Partnership with Flipkart and PayU for biometric card authentication.
- Opening of the bank’s first Digital Locker-focused branch.
- Continued leadership in UPI payments and merchant acquiring.
Subsidiary Performance:
Axis Bank’s domestic subsidiaries also delivered healthy earnings.
- Combined subsidiary PAT reached ₹546 crore, up 21% YoY.
- Axis Finance PAT increased 29% YoY.
- Axis Capital PAT surged 72% YoY.
- Axis Securities PAT grew 8% YoY.
- Axis AMC PAT increased 3% YoY.
Capital & Liquidity:
The bank maintained a strong capital position.
- CAR stood at 16.67%.
- CET-1 ratio remained at 14.64%.
- Average Liquidity Coverage Ratio remained around 119%.
- Additional prudent provisions created an extra capital cushion beyond regulatory requirements.
Risk Analysis
Summary:
- Despite robust earnings growth, the bank continues to operate in a dynamic interest rate and macroeconomic environment where margin pressure and credit cycles require continuous monitoring.
Key Risks:
- Declining Net Interest Margin compared with the previous year.
- Moderation in trading income.
- Competition for deposits across the banking sector.
- Changes in interest rate environment affecting margins.
- Potential macroeconomic and geopolitical uncertainties impacting future credit demand.
Worst Case:
- A prolonged decline in margins, weakening credit demand or deterioration in asset quality could moderate earnings growth despite strong balance sheet expansion.
Risk Level: Medium
Company Commentary
Managing Director & CEO Amitabh Chaudhry highlighted that the bank continues to focus on building a future-ready franchise through investments in:
- Digital transformation
- Artificial intelligence
- Customer experience
- Digital security
- Growth platforms
- Ecosystem partnerships
- Long-term value creation for customers and stakeholders
Official Exchange Filing: Axis Bank – Press Release and Investor Presentation for the Quarter Ended June 30, 2026.
