Private sector lender Axis Bank reported a 23% year-on-year increase in net profit to ₹7,114 crore for the first quarter of FY27, driven by healthy growth in core income, improved operating efficiency and stable asset quality.
The bank had posted a net profit of ₹5,806 crore in the corresponding quarter of the previous financial year.
NII rises 8%, fee income remains robust
Axis Bank’s Net Interest Income (NII) rose 8% year-on-year to ₹14,646 crore during the quarter, while the Net Interest Margin (NIM) stood at 3.46%.
Other income remained healthy, with fee income growing 7% to ₹6,156 crore. Retail fees contributed 67% of the bank’s total fee income despite registering a modest 2% growth. Corporate and commercial banking fees rose 18% year-on-year to ₹2,004 crore, while trading income stood at ₹537 crore.
Asset quality strengthens
The bank continued to improve its asset quality, with Gross Non-Performing Assets (GNPA) declining to 1.28% as of June 30, 2026, from 1.57% a year earlier.
Net NPA improved to 0.39%, compared with 0.45% in the corresponding period last year.
Recoveries from written-off accounts stood at ₹961 crore during the quarter, while recoveries and upgrades from NPAs totalled ₹2,126 crore.
Gross slippages were ₹5,566 crore, higher than ₹4,675 crore in the previous quarter but significantly lower than ₹8,200 crore reported in Q1 FY26. The bank wrote off NPAs worth ₹2,399 crore during the quarter.
The provision coverage ratio remained stable at 70%, while the overall provision coverage, including standard and additional provisions, stood at 161% of gross NPAs.
Maintains prudent provisioning
Provision and contingencies during the quarter stood at ₹2,223 crore, including ₹2,079 crore towards specific loan loss provisions.
Axis Bank continued to retain the ₹2,001 crore additional provision created during Q4 FY26 to guard against potential macroeconomic and geopolitical risks, particularly uncertainties arising from West Asia.
The bank clarified that the provision remains purely precautionary and does not indicate any deterioration in the quality of its loan or investment portfolio.
Digital leadership gathers pace
Axis Bank continued to strengthen its digital banking franchise during the quarter.
Its Axis Mobile application now has 16 million monthly active users, including 12 million non-Axis Bank customers, and enjoys a 4.8-star rating on both Google Play Store and Apple’s App Store, based on more than 3.5 million reviews.
The bank maintained its leadership in the UPI payer PSP segment with a 38% market share by transaction volume and remained among India’s largest merchant acquiring banks with a 22.1% market share.
Its WhatsApp Banking platform has onboarded more than 40 million customers since its launch in 2021, while the bank continues to expand its digital lending capabilities through the Account Aggregator framework and now hosts 480 APIs on its developer portal.
Focus on AI and customer experience
Axis Bank MD & CEO Amitabh Chaudhry said the bank remains focused on combining trust, innovation and resilience as customer expectations continue to evolve.
“We continued to invest in strengthening digital security, deploying AI to simplify customer journeys, expanding growth platforms and supporting ecosystems that drive economic progress. These investments will help create enduring value for our customers, stakeholders and communities,” he said.