Axis Bank reported 23% jump in its Q1FY27 net profit at Rs 7,113.92 crore from Rs 5,806 crore in Q1FY26. The profitability surge is driven by positive operating jaws and stable asset quality. The Net Interest Income rose 8% year-on-year to Rs 14,646 crore from Rs 13,560 crore in the same quarter last fiscal.
The Net Interest Margin for the country’s third largest private bank came in at 3.46%, the lowest in the last one year. In fact, this is the lowest NIM for Axis Bank in nearly 19 quarters despite loan growth being the best in 10 quarters. The company reported modest growth in its core operating profit as pressure on other income and a rise in interest expenses prevailed.
Axis Bank Q1 Highlights
Provisions and contingencies fell 43.7% YoY to Rs 2,222.54 crore in the quarter — leading to a sharp rise in net profit. The figure stood at Rs 3,947.66 crore in Q1FY26.
Core net interest income grew 8% to Rs 14,646 crore on the back of a 19% jump in advances. Advances growth was led by a 38% growth in corporate loans, while retail loans grow by just 8% during the April-June period.
Axis Bank asset quality in Q1FY27
Axis Bank reported stable net NPA of 0.39% in Q1. This has seen a steady decline from 0.45% from the Q1 of last quarter. Fresh slippages saw some uptick sequentially at Rs 5,566 crore from Rs 4,675 crore. The Q1 net NPA came in at Rs 5,193 crore from Rs 4,790 crore in Q4FY26.
Axis Bank Management on Q1 performance
India’s third-largest private lender by market capitalisation had taken a one-time charge on a part of its loan book in the year-ago quarter due to what it termed an “industry benchmarking” exercise on its credit overdraft facilities.
Indian banks have seen a pick-up in loan growth since April, with demand for personal credit and loans against gold rising. Small businesses have also stepped up borrowings, in part backed by government default guarantees made available against the backdrop of disruptions caused by the Iran war.
MD and CEO Amitabh Chaudhry elaborated that, “As customer expectations evolve and technology continues to reshape financial services, our focus remains on building a franchise that combines trust, innovation and resilience at scale. 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.”