DBT Bureau
Pune, 18 July 2026
Axis Bank reported a 23% year-on-year rise in profit after tax (PAT), supported by positive operating leverage and stable asset quality. Total deposits increased 18% YoY, while advances grew 19%, reflecting continued market share gains. On a YoY and QoQ basis, total deposits, term deposits, current account and savings account balances recorded healthy growth, while SME loans rose 25% YoY and corporate loans surged 38%, including a 27% increase in mid-corporate lending. The combined SBB, SME and mid-corporate portfolio reached ₹3,061 billion, accounting for 24% of total loans. Core operating profit stood at ₹11,122 crore, up 10% YoY and 5% QoQ, while the cost-to-assets ratio improved to 2.20%. Granular fees contributed 90% of total fees, with corporate and commercial banking fees registering strong growth. The bank further strengthened its capital position, with the CET-1 ratio at 14.64% and the capital adequacy ratio at 16.67%. Asset quality remained robust, with gross NPA declining to 1.28%, net NPA to 0.39%, and the net slippage ratio improving significantly. During the quarter, the bank acquired around 0.9 million credit cards, maintaining a market share of about 13.4% in cards in force, while retaining its leadership in the UPI Payer PSP segment with an estimated 38% market share and the lowest technical decline rates.
This quarter, Axis Bank accelerated its focus on building a future-ready franchise through investments in digital, AI-led transformation and ecosystem partnerships.
Strengthening its Safe Banking proposition, Axis became the first leading Bank to introduce Aadhaar Face Authentication as a self-service journey to digitally update mobile numbers. It collaborated with Flipkart and PayU to enable biometric authentication for card payments with secure OTP-free transactions. It also launched AI-powered compliance solutions for current account customers, transforming ReKYC and business profile updates through intelligent, paperless workflows that enhance customer experience, improve operational efficiency and compliance controls. Axis Bank also launched its first Digital Locker-focused branch, combining advanced automation, security and convenience in a differentiated futuristic banking format.
The Bank deepened its engagement with the hospitality and tourism sectors through its partnership with FHRAI. It also hosted the Tourism Promotion & Expansion Plan Meet in Srinagar, reaffirming its long-term commitment to driving inclusive and sustainable economic development in Jammu & Kashmir.
Axis Bank announced a Rs.100-crore partnership with BITS Pilani to establish an advanced Industry Research, Technology & Innovation Park in Hyderabad. It also released the fifth edition of the 2025 Burgundy Private Hurun India 500, a report showcasing India’s 500 most valuable companies, collectively valued at US$3.4 trillion.
The quarter also marked a significant milestone for the Axis Group, as Axis Finance announced a Rs. 2,250-crore capital raise from Axis Bank and Kedaara Capital, strengthening its capital base to support its next phase of growth across retail, MSME and wholesale lending.
These efforts were complemented by industry recognitions across innovation, digital banking and customer experience, with three Platinum wins at the Infosys Finacle Innovation Awards, two honours at the PWM WealthTech Awards 2026, and the Financial Express Best Digital Bank of the Year 2026 award.
Amitabh Chaudhry, MD & CEO, Axis Bank said, “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.”
Q1FY27 Performance at a Glance
Stable core operating performance with operating profit at ₹11,659 crore, up 16% QoQ, while core operating profit stood at ₹11,122 crore, up 5% QoQ. Net Interest Income (NII) increased 8% YoY, with Net Interest Margin (NIM) at 3.46%.
Robust deposit growth across average and period-end balances. On a QoQ and QAB/MEB basis, total deposits, term deposits, current account and savings account balances registered healthy growth. CASA grew 13%/11% YoY and 5%/-1% QoQ, with the CASA ratio at 37% (QAB) and 38% (MEB). Cost of funds declined 35 bps YoY and 2 bps QoQ.
Strong loan growth with advances rising 19% YoY and 2% QoQ, while the bank’s focus segments grew 18% YoY and 2% QoQ. The SBB, SME and Mid-Corporate portfolio reached ₹3,061 billion, accounting for 24% of total loans, up 24% YoY. Retail loans grew 8% YoY, SBB loans 18% YoY and 2% QoQ, while rural loans increased 16% YoY.
The bank remained well-capitalised with a 52 bps additional cushion over the reported capital adequacy ratio, supported by provisions of ₹8,244 crore. It also maintained an excess SLR of ₹1.42 lakh crore, with an average Liquidity Coverage Ratio (LCR) of 119% during Q1FY27.
Continued leadership in payments and digital banking, with the Axis Mobile app maintaining a 4.8 rating on both Google Play and the iOS App Store and around 16 million monthly active users. The bank also remained among the largest merchant acquiring players with a 22.1% terminal market share.
Stable asset quality with GNPA at 1.28% and NNPA at 0.39%. Provision Coverage Ratio (PCR) remained healthy at 70%, while the aggregated coverage ratio improved to 161%. Gross slippage ratio declined to 1.79%, net slippage ratio to 1.12%, and net credit cost improved to 0.63%.
Domestic subsidiaries delivered healthy performance, reporting a combined Q1FY27 net profit of ₹546 crore, up 21% YoY, with a 41% return on investment. Axis Finance posted PAT of ₹244 crore (+29% YoY), Axis AMC ₹134 crore (+3% YoY), Axis Securities ₹96 crore (+8% YoY), and Axis Capital ₹65 crore (+72% YoY), executing 8 ECM and 3 non-ECM deals during the quarter.
Profit & Loss Account: Q1FY27 Performance
Axis Bank reported a 23% year-on-year (YoY) increase in net profit to ₹7,114 crore for the quarter ended June 30, 2026, supported by steady growth in core income and healthy fee earnings.
Net Interest Income (NII) rose 8% YoY to ₹14,646 crore, while the Net Interest Margin (NIM) stood at 3.46% during the quarter.
Fee income increased 7% YoY to ₹6,156 crore, with retail fees contributing 67% of the bank’s total fee income. Corporate and commercial banking fees grew 18% YoY and 16% QoQ to ₹2,004 crore.
Trading income stood at ₹537 crore, while miscellaneous income was ₹42 crore, taking total non-interest income (comprising fee, trading and miscellaneous income) to ₹6,735 crore.
The bank reported an operating profit of ₹11,659 crore, up 16% QoQ, while core operating profit stood at ₹11,122 crore, up 5% QoQ. Operating expenses increased 5% YoY during the quarter.
Overall, Axis Bank delivered a stable operating performance in Q1FY27, backed by healthy growth in interest income, fee income and profitability.
